The Talbots, Inc. (TLB)

I poked a stick at this and all I got for it was a horrible smell. Tangible book value of ($5.78) a share, yes that is a negative number. An anemic 1.34% operating return on assets for the past year with consumer spending expected to be hit and miss amongst retailers. Do I expect this retailer to be one of the survivors? Not really, Talbot's has too much exposure to the working professional customer and with this employment contraction has come a large number of permanently lost jobs. However, I do hear that the medical fields will grow a large number of jobs in the future. Perhaps if Talbot's changes their inventories to those solid colored jumpsuits they will continue to cater to the working professional.

122.17 PE
25.00% div

Those are the recent CAPS # but C'mon.

Negative book and negative cash flow and US consumers are broke.

Recs

If the CEO takes a bonus to reflect a "retirement adjustment" after the company loses money and various cost cutting measures... then how long term can this stock expect to be? And long term is it's only hope as it hopes to dig it's way out of the debt it owes. I'm coming back to this well after shorting it last year and I expect more of the same.

The company has survived last years fall and is back to where it was before the crash. To survive, it likely cut costs and reduced their inventory to match demand. This year’s shopping season is still uncertain. Even through there appears to be improved sentiment among the shoppers, the unemployment rate is much higher and available credit is less and more difficult to obtain, so the optimism among retail bulls may lead to their slaughter.

Talbots is a women's clothing retailer with decreasing sales, negative profits, negative equity, and I don't know many woman just dying to have the latest.

Talbot is a fading fad.

Target is $0.

The Talbots is over $5 again? Waaa haaa hah.

High debt and low inflation mean you can stop looking for good retail sales numbers.

Talbots is at risk to go bankrupt because it has too much debt and very low profits. So far this concept has been unable to successfully compete with other specialty retailers.

Wow. Just wow.

I can't believe this company is still in business.

Wow this is an incredible and insanely stupid runup. I'm not sure I will be able to restrain myself from shorting it much longer. Maybe it will make it all the way to $9.

Shorting a very weak performer with an unreasonable run-up in price. Might take a real position in this one once it settles down.

Talbots cannot maintain a position. The past CEO purchased J. Jill when the company had dollars to spare, admittedly in hindsight the poorest of decisions. The new CEO has shaken the snow globe to toss out merchandising basics for which the carriage trade and the bargain hunters alike clamored; catalogs and website are full of wear one-timers albeit displayed in attractive venues. Trudy Sullivan has brought her entourage of pricey henchmen from her former Liz Claiborne post, with bonuses and high salaries for the corporate staff, while the call center, the stores, and other places of Talbots employ are hit hard at the unemployment line and the pocketbook. A lot more to worry about than classic fashion is the current scenario at Talbots.

TLB has an illiquid balance sheet. It is also loss making at least until 2011.

I picked this at almost exactly the right time - after the short squeeze and 'euphoria' buying during the rally, but before reality hit TLB investors like a 2x4 to the head.

It has been beaten, and it is turning now

Talbot's recently took it on the chin. Talbot's management is not as stupid as some on this board suggest. Talbot's is landing worldwide contracts, and is positioning itself to succeed in the future. At $2.45, this is an absolute steel. It certainly is not going to go below $2.40 again. TLB will outperform the S&P in the coming weeks and months, and maybe even years if your starting point is $2.45. Oversold to say the least.