Collective Brands Inc. (PSS)

Serving a large debt ogre; recently overbought.

Should re-trace to about 6.75 even with stimulus package.

PSS is transforming itself from a dowdy discounter to a relevant mainstream retailer. As it moves up one rung on the apparel branding ladder, its margins can be expected to rise.

Payless Shoesource operates as a family footwear specialty retailer offering athletic, casual, dress shoes and accessories such as handbags and hosiery for women, men and children. The Company operates its business in two segments: Payless Domestic and Payless International. This largest footwear retailer in the Western hemisphere has 4574 retail shoe stores in US, Puerto Rico, US Virgin islands and Central American Region.

Payless Shoesource has been the zest amongst its customers with significant improvement in the brand equity as per one survey. Since the company has a dominant hold in the children’s footwear market, their multi-year direct to retail licensing agreement with Disney could augur well. Payless and Exeter have teamed up to launch athletic shoes called ‘Tailwind’ which will be exclusively available at Payless Stores by early 2007. Payless designer collections are the most broadly distributed designer footwear lines available in the US today. Their recent partnership with New-York based designer ‘Laila Rose’ could enable them to deliver the original designs featuring the latest trends. This line is expected to be available in approximately 400 Payless stores by 2007.

Furthermore, their alliance with Abaete should do well as this line is expected to arrive in 800 stores by the coming spring. Through an agreement with Airwalk, they have entered into watches and eyewear market. The company is aggressive on direct sourcing to improve their margins in the future. Also, the recent performance of the company has been good with strong footwear sales in women’s and children’s categories. They have consistently generated positive same-store sales in past few quarters. Looking at the series of initiatives, we believe Payless Shoesource will OUTPERFORM

High debt to equity ratio at the start of a recession.

designer shoes

Oversold. The company is not going away and the stock will come back.

RSI PASSING 30
STOCH CONFIRM
HIGH VOLUME
GOOD CANDLE
SHORT DWN TREND
ALL = JUMP !!!

Great future earnings

in a recession folks want cheap shoes and that they have thier sales should soar

looking at the stock trend i don't see much improvement in the next few month's

gOOD FUTURE

Payless has been expanding in developing countries for sometime, especially in South America. As these developing countries gain wealth, Payless will reap the reward of investing in them early.

a good stock

PROVEN TRANSFORMIST MATT RUBIN REACHING FULL EXACUTION STAGE OF REVAMP. STOCK BEATEN DOWN EXCESSIVELY!
jd

Good growth and earnings.

PSS has updated its look, and upscaled its lines, while continuing to provide good value at low prices.

Matt Rubel CEO of Cole Haan now Payless in bed with Nike. nuff said

very viable business strategy that is getting a lot of traction

Used to sell ugly shoes. My 20 something kids shop there all the time. They go for the selection at a reasonable price, not for cheap shoes that no one wants.