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A Specialty retailer of men's suits in the United States and Canada.
MW has become the last specialty broad line men's clothing retailer in the US and Canada. The well publicized dispute between MW and JoS A Bank resulted in the merger of the two companies--using differing marketing strategies to lure shoppers. Now, the only competition for MW appears to be online suit retailers and the menswear divisions of M, DDS and others. Despite the apparent loss of favor for men's suits in society, there remains a steady demand for well fitting men's clothing. Biggest risk is weakness in tailoring and fitting--the alternatives online are compelling, cost effective and, when handled properly, provide equal fitting skill to an in-store tailor. Accurate measurements sent to an online manufacturer give results just as flattering as an old line tailor with chalk on his fingers and a tape measure around his neck.
Mens Wearhouse will grow from its upcoming merger with Jos. A. Bank, although it might take a while for the merger to begin producing growth.
Clothing is a tough business to compete in. Ppl rather buy electronics than suits.
Will the merger increase both company's stocks?
Despite the stigma surrounding outsting the founder, the company is poised for growth. A lot depends on new marketing campaign, but their ads have been great in the past and, despite having a different face, I think they will handle it well.
Even as ubiquitous as it is, there's plenty of room for growth in this space. The company's debt is almost entirely AP and deferred taxes, and the cash is (wisely) going heavy into stock repurchase and equipment. Good margins, value-priced.
This company will really conquer the S&P 500 performance. This weeks for sure.
I love me an income stock, and Men's Wearhouse has plenty of room to grow their dividend over the next few years thanks to a measly payout ratio of 23. MW's dividend has grown 260% in the last six years, and I believe both the dividend and the company itself will grow in the future.
No more debt, equity keeps improving, net income and revenue are on the rise once again. Looks like they are fully on their way to a comeback.
Worst invesmtment reason, they sent me a direct mailing for prom tux's with a $40 coupon because I had previously rented a tux from them....only thing is that was 5 years ago. If you're going to use direct mailings be specific and save money. For example send it to guys who rented one a year ago and haven't rented one for more than 2/3 consecutive years. It shows carelessness
GOOD DAILY BUY
Chart broke out of long base. Should go to $40+ in next year.
Simply put, money is the motive. MW is stuck in between designer labels and discount clothing prices, and therefore miss both markets. With fewer people going to work for the next few months, and those that are employed looking to cut costs, I think the demand for medium priced suits is going to see hard times. Those that have money will spend it designer items, and those that don't have money won't spend it.
Men's Wearhouse will pick up when the job market bounces back because men will have to purchase new attire for job interviewing and for new hired positions. I don't think I would buy the stock right now, but once I see the price stop declining and the job market news rebound. I think MW may trade sideways for a while before going back up, that could be a buy signal.
Like the product.
GOOD MEN STORE
MW is a true value play (wait, don't leave!). By value, I mean that it's cheap, not "value trap" like GE with mountains of debt. Let's take a look at Men's Warehouse:#1 - Fundamentals: Total assets = $611 million, Total liabilities = $388 million. Price/Sales = .30, Trailing P/E = 8.1, Price/Book = .71.#2 - They sell the same products as the competition, cheaper, and provide good service. Their discount retailer status should serve them well during this crisis.#3 - Very little debt. It's so rare these days, and yet still taken for granted. Highly leveraged companies (cough, GE, cough) are what you wanna steer clear of now.#4 - Beaten down - 20% of MW's float is shorted. It's down from a high of over $50 in 2007 to $11 today. It may have farther to fall, especially with earnings coming up, but expectations are LOW and I think it's a good bet here, having reached what I loosely consider "dirt-cheap" status.#5 - A sustainable dividend of 2.4%. Their dividend payout ratio is only 20%. I love this kind of conservative management in this environment. (Note: their dividend was the same at $50 as it is now, it wasn't the company who got ahead of themselves...)
Just a hunch,a well run company.
obsolete business model/product
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