Trends are everything in the fashion world. What’s hot one summer will almost certainly look outdated by the next — when it’s been priced to move. #-ad_banner-#Investors know a little something about trends, too — along with buying the hottest stock versus the one on sale. Value investors pride themselves on finding out-of-favor companies selling at discounted prices and holding them until the market realizes the stock’s intrinsic value. They also know that all trends, no matter which way it’s heading or how strongly it’s moving, eventually reverse direction. One small retailer has had a tumultuous year, dropping… Read More
Trends are everything in the fashion world. What’s hot one summer will almost certainly look outdated by the next — when it’s been priced to move. #-ad_banner-#Investors know a little something about trends, too — along with buying the hottest stock versus the one on sale. Value investors pride themselves on finding out-of-favor companies selling at discounted prices and holding them until the market realizes the stock’s intrinsic value. They also know that all trends, no matter which way it’s heading or how strongly it’s moving, eventually reverse direction. One small retailer has had a tumultuous year, dropping nearly half its value. Disappointing first-quarter earnings didn’t help investors’ confidence, sending the stock down as much as 10% in a single day. Yet considering that consumers are spending more as the economy picks up its pace, and industry competitors are making bold acquisitions in anticipation of growth, there’s clearly more to the story here. New York & Co. (NYSE: NWY) is a $219 million woman’s fashion and apparel company with about 500 retail locations and a growing e-commerce base. The company has incorporated many celebrities into its marketing efforts over the years, with its latest a clothing collection in… Read More