Another interesting stock that CAPS says needs more picks.

It IS troubling that the current market cap is about 50% above the enterprise value of the corporation, but most other statistics are pointing to good things for this company.

To whit,

1) Approximately 67% of the shares are held by the so-called "smart money" (18.64% by insiders and 49% by institutions).

2) It's already off over 40% in the last 52 weeks, meaning that the price has come in, big time.

3a) Total cash on hand? 40.6 MILLION

3b) Total debt? 96 THOUSAND.

3c) Think this company has issues with too much debt? Me neither.

4) Along the previous thread, current ratio is nearly 5 and a half, which is beyond excellent.

5) Debt to equity is 0.001. (That's 1/1000th)

6) Shall I continue?

Hampshire in a spot! Hampshire Group, Limited is a holding company that markets apparel for men and women through four wholly owned subsidiaries: Hampshire Designers, Inc., Item-Eyes, Inc., SB Corporation and Shane Hunter, Inc. Their products, both branded and private label, are marketed in the moderate and better markets through multiple channels of distribution including national and regional department stores, mass market retailers and specialty stores.

The company’s results of operations in the last few years were affected by the highly competitive conditions in the retail apparel market. The apparel industry is highly competitive and fragmented, as a result of which company’s sales has been decreasing in women’s sweater business, which contributes major portion to the revenue.

The increasing competition has compelled Hampshire to sell its products with heavy discounts to its customers. This has resulted in weak operating and net margins for the company, which has been quite below the industry averages. It is also anticipated that margins will be under pressure in coming quarters due to anticipated increased competition in the apparels market.

Moreover, the company generates 54% of its revenue from 5 of its major customers including Federated Department stores and May Department stores. With the merger of these two majors, the company expects that the number of stores that will carry its products will reduce. With the decrease in the company’s customer base over the past few years due to increasing consolidation in the retail market and in the absence of long term agreement with its 5 major customers the company’s revenue generating ability is at risk.

The outcome of the audit committee investigation report on misappropriation of funds by the top management and the inability of the company to file its financial statements for recent quarters carries a negative outlook for the company.

In the lights of the risks faced by the company, it is expected that increasing competition and the declining sales may hamper the Hampshire’s performance.