Chico''s FAS Inc. (CHS)

[Porgie Tirebiter]

CHS was upgraded to overweight by Piper Jaffray with a $22 price target.

Expecting earnings on August 22 of 30¢ per share which would be a 20% increase over the same quarter a year ago.

CHS is currently trading at about the same level that it was when they initiated dividends in early 2010, but now with a considerably lower multiple. If the P/E was to go back to 20, CHS would be a $20 stock. So $20 is my personal price target.

[Porgie Tirebiter]

Earnings out this morning.

Chicos cranks it out of the ballpark. 32¢ per share is by far the best quarter ever for them, and that number should knock the P/E ratio down to the mid-teens at today's share price.

No significant debt, and cash and cash equivalents total $147 million. That's about 88¢ cash per outstanding common share. That's down considerably from a year ago, reflecting the all cash (not leveraged) buy out of Boston Proper.

Very solid, very healthy little company.

[Porgie Tirebiter]

CHS, like a lot of retail today, is down over 5% on "Europe worries" where it has absolutely no exposure.

Earnings are coming out on the 16th. Expecting 30¢ per share which, if met, should be enough to lower the P/E a bit.

Bidding on 200 shares at $14.25 to begin to replace what I sold up in the high $15s last month.

[Penny Roger$]

Great thinking there, I thank you for the insight. You enjoy all sectors? Retail seems like it is very stable.

[Porgie Tirebiter]

I don't even need to look at the chart to know it.

I kept all my CHS the last time it hit $16, and raised cash by selling a series of calls all the way down. I bought a whole lot more below $10, and this time up CHS is a big bulge in my portfolio, so I have to trim down my holdings, no matter whether I think it may go higher.

CHS's P/E is approaching 20. I'll take some of that money and put it in my other retailer (WAG) which has been beaten up badly lately. It's P/E is down to 11. WAG is on track to raise the dividend by at least 3¢ in August, which will produce an effective yield of almost 3.2% at the current price, or more than double what that same money would get if I left it in CHS.

Don't get me wrong, I like CHS a lot and will continue to hold a significant number of shares. But re-balancing is important.

[Penny Roger$]

I am sure you have seen this already, just thought to make a note of it for ya.

[Porgie Tirebiter]

CHS enjoying another kick higher today, on good news for February retail sales in general.

I'll be listening: http://www.marketwatch.com/story/chicos-fas-inc-to-webcast-the-companys-meeting-with-security-analysts-2012-03-01

The last time CHS hit these levels, I began raising cash by aggresively selling cals, and bought more under $10 with the cash raised.

CHS is starting to get a little oversized in my portfolio. I'm beginning to get itchy. I may trim my holdings. Haven't decided.

[Penny Roger$]

Chico's FAS, Inc. Reports Fourth Quarter Earnings Per Share up 25% to $0.15

http://ih.advfn.com/p.php?pid=nmona&article=51300550&symbol=CHS

[Penny Roger$]

~ Wednesday! $CHS ~ Earnings posted, pending or coming soon! In Charts and Links Below!

~ $CHS ~ Earnings expected on Wednesday *
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.








http://stockcharts.com/h-sc/ui?s=CHS&p=D&b=3&g=0&id=p88783918276&a=237480049




http://stockcharts.com/h-sc/ui?s=CHS&p=W&b=3&g=0&id=p54550695994



~ Google Finance: http://www.google.com/finance?q=CHS
~ Google Fin Options: hhttp://www.google.com/finance/option_chain?q=CHS#
~ Yahoo! Finance ~ Stats: http://finance.yahoo.com/q/ks?s=CHS+Key+Statistics
~ Yahoo! Finance ~ Profile: http://finance.yahoo.com/q/pr?s=CHS
Finviz: http://finviz.com/quote.ashx?t=CHS
~ BusyStock: http://busystock.com/i.php?s=CHS&v=2


<<<<<< http://www.earningswhispers.com/stocks.asp?symbol=CHS >>>>>>



http://investorshub.advfn.com/boards/post_prvt.aspx?user=251916

*If the earnings date is in error please ignore error. I do my best.

[Porgie Tirebiter]

CHS is powering higher in front of earnings next Wed. The last three quarters the stock has cratered on earnings news. We are expecting only 11¢ this quarter which would be the lowest in two years.

Hmmmm.

[CJAKE1]

Today's close lower volume than yesterday above 300K. People getting in

[CJAKE1]

Porgie the close yesterday was dramatic. 210k, 155k, 481k Somebodies wanted in

[CJAKE1]

I've sat in the car. Never really understood White/Black, but then ladies do the shopping

[CJAKE1]

P.T. SORRY!! Guess "KIDS" is relative. I admit my daughters are 33 and 35. Both have decent incomes. CHS is about $1.50 above its 52 week low. It's about $5.00 below the 52 week high. Zacks dealt CHS the Sell card. Have a good day!

[Porgie Tirebiter]

That's not Chico's market.

The target is mature women, 35 and up. The idea is that it's an underserved market, a market with generally more disposable income.

[CJAKE1]

P.T. YEAH, see what the kids and young women are buying. It's a good indication what should do well.
HEY...my kids use FACEBOOK. Ever hear of it????

[Porgie Tirebiter]

My wife and I own a ton of CHS.

We currently need a close below $12 by FEB options expiration, and are watching that closely.

This company has $200 million free cash, and no debt AFTER buying Boston Proper in an all cash deal.

Women talk about about Chico's, Soma and WH|BM while walking around the malls.. Pay attention!

[CJAKE1]

Thought this might move up today. It did, but settled back down. Chico's seems to do brisk business. The stores in Florida, have customers

[Porgie Tirebiter]

Very big action on Feb $12 calls and puts today.

Someone's betting on CHS being higher than $12.45 by expiration. Hedging with about 1/4 the number of puts.

And the share price is taking off. Someone knows something.

[Porgie Tirebiter]

Earnings will be out on Tuesday Nov. 22. Looking for 20¢ which is up about 25% from the same quarter a year ago.

With that, P/E will be well below 15. Earnings continue to rise nicely year over year.

[Porgie Tirebiter]

Barclay's capital downgrades CHS to a $13 target, and we gap down big today. I don't subscribe to Barclay's, but I have a hunch they are worried about CHS's investment portfolio and what guidance will be regarding investment income. That's a non factor as far as I can tell. Would they rather have the company selling convertible debt??

Earnings are coming out prior to the open tomorrow.

I just bought a hundred more shares, and bought back my last set of Aug. 14 calls for ten cents. Had sold them for 40 cents last Thursday or Friday... Whenever it was.

[Porgie Tirebiter]

Sold and bought back three sets of August calls since July expiration. Just bought back the last bunch.

No fun to watch the stock tank, but at least it can be offset by raising cash.

[Porgie Tirebiter]

JP Morgan upgrades CHS to overweight with a $17 price target.

http://www.benzinga.com/analyst-ratings/11/06/1160703/jp-morgan-upgrades-chicos-to-overweight-raises-pt-to-17

[Porgie Tirebiter]

10-Q was filed last night, and it's a home run. Recent dips in price were in sympathy with poor results from The Gap and Coldwater Creek.

CHS has no debt, and over $440 million in it's investment portfolio.

Our investment portfolio is maintained in accordance with our investment policy which identifies allowable investments, specifies credit quality standards and limits the credit exposure of any single issuer. Our investment portfolio consists of cash equivalents and marketable securities, including municipal bonds, asset-backed securities, corporate bonds, commercial paper, certificates of deposit, and U.S. Treasury securities. The portfolio as of April 30, 2011, consisted of $259.8 million of securities with maturity dates less than one year and $183.0 million with maturity dates over one year and less than or equal to two years. We consider all available-for-sale securities, including those with maturity dates beyond 12 months, as available to support current operational liquidity needs and therefore classify these securities as short-term investments within current assets on the consolidated balance sheets. As of April 30, 2011, an increase of 100 basis points in interest rates would reduce the fair value of our marketable securities portfolio by approximately $3.7 million. Conversely, a reduction of 100 basis points in interest rates would increase the fair value of our marketable securities portfolio by approximately $2.0 million.

[Porgie Tirebiter]

Good earnings news on all fronts, with a bottom line beat. However the top line only rose 12% over a year ago, and that's not quite as much as analysts expected.

So the stock craters more than 7%. Opportunity knocks. I'm taking a another small bite and adding 200 shares right here.

Chico's FAS Inc. (CHS) fiscal first-quarter earnings rose 30%, beating analysts' estimates, on improved margins and same-store sales growth in all brands.
The operator of its namesake stores, as well as the Soma Intimates and White House/Black Market chains, has seen rising profit lately, helped by higher sales at its direct-to-consumer business and better overall revenue. The recession hit in the midst of Chico's plan to reverse a long sales decline and the changes have gained traction, helping drive recent strength.
For the quarter ended April 30, Chico's reported a profit of $45.9 million, or 26 cents a share, up from $35.4 million, or 20 cents a share, a year earlier. Sales jumped 12% to $537.2 million.
Analysts polled by Thomson Reuters had most recently forecast earnings of 25 cents on revenue of $544 million.
Consolidated comparable sales, which include the direct-to-consumer catalog and Internet sales, climbed 7.7%. Same-store sales rose 7.8% for the Chico's/Soma Intimates brands and increased 7.4% for the White House/Black Market brands.
Gross margin rose to 59.1% from 58.5%.

[Porgie Tirebiter]

Interesting article: http://www.review.net/section/detail/chicos-turnaround/

Together, Dyer and Kleeberger turned the company around by cutting expenses, boosting investment in merchandise and pushing online sales. Net income last year totaled $115 million on sales of $1.9 billion, a 64% increase in profit compared with 2009.

What’s more, Chico’s balance sheet is one of the most enviable in the retail business. The company has no debt and $549 million in cash and securities.

[Porgie Tirebiter]

Barclay's initiates coverage of CHS with a $16 price target.

http://www.americanbankingnews.com/2011/04/13/barclays-capital-bcs-analysts-begin-coverage-on-chicos-chs/

MKM Partners (I don't know who they are) target CHS at $17

[bigboyjones]

You are 100% correct. Its sitting at 14.91 today so its definitely something I am hoping to get back into if I can free some of this capital up from another stock this month.

[Porgie Tirebiter]

I can't argue with taking a profit.

But hey, if you look at earnings projections, CHS at $15 would have a P/E of around 10 a year from now. That would be very low for this sector. If CHS meets earnings for 2011, I think CHS could conservatively see at least $20 by a year from now.

And calls are highly liquid. CHS is a great stock for covered call writing.

[bigboyjones]

Its a great stock but I sold just recently for a large profit and to play elsewhere. It definitely would not have hurt to wait a little while longer. If they ever do settle down, I'll be back :)

[Porgie Tirebiter]

Cramer gave CHS a buy-buy-buy last night.

http://www.cnbc.com/id/15840232/?video=3000013380&play=1

[Porgie Tirebiter]

CHS continues a nice steady rise in the face of a generally brutal market, and even a little pop on ex-dividend payment.

[bigboyjones]

Very nice. It is unfair it gets pulled down with other retail reports but I guess it gives an opportunity to buy on the dips. Looking forward to 2011-2012

[Porgie Tirebiter]

Solid earnings growth and a 25% dividend increase. Nicely done.

http://www.prnewswire.com/news-releases/chicos-fas-inc-reports-fourth-quarter-earnings-per-share-of-012-vs-010-116723774.html

[bigboyjones]

Nice gains prior to the financials, where do think this will go price wise?

[Porgie Tirebiter]

CHS is getting killed in sympathy with Talbot's today.

Opportunity is knocking.

[Porgie Tirebiter]

There were some buy-out rumors around in late Novemeber.

Then some other analysts were saying that CHS doesn't work as a buy-out target because it trades at a higher multiple (ie; it's more expensive) than it's peers, which is true.

But then again, CHS has averaged a 10% revenue growth rate over the last 5 years, during a tough time to grow revenue. They had a couple tough quarters over the last two years, but who didn't? They are bouncing back... Fast. In the last 12 months they grew earnings at 27% on revenue growth of 13%.

I think this stock is real cheap based on the company's growth rate. It keeps getting hammered when there is bad news about unemployment or retail sales in general, but the high-end market they serve is less sensitive to those kind of numbers.

I think CHS is a growth stock that pays a dividend, and is an ideal take-over target for one of the industry powerhouses, or a take-out for private equity. Either way, I think shareholders would collect a pretty nice premium. Meanwhile I'll pocket the dividend.

[bigboyjones]

Agreed, and their quarterly results will push it back up probably. Did anyone hear anything else about the buyout rumors in November? Id settle for that too :)

[Porgie Tirebiter]

Jobless claims numbers are killing CHS today, and thats a mistake.

These stores cater to the high end crowd.

I'm buying back all my calls. Maybe I'll get to sell another round of them before Jan. expiration.

[Porgie Tirebiter]

Goldman's removes CHS from it's "Conviction Sell" list.

They are finally catching up.

[Porgie Tirebiter]

Video from CNBC regarding CHS as a buy-out target. And not just that... At about 3:15 in the video, the remarks about high-end retail also apply to CHS.

http://www.cnbc.com/id/15840232?video=1659895007&play=1

[Porgie Tirebiter]

CHS was mentioned as a possible buy-out target on CNBC, at about 12:45 Eastern.

Shares are moving, up 4% so far today.

[Porgie Tirebiter]

The technical analysts: http://www.zacks.com/research/get_news.php?id=327l1666

Ignore fundamentals at thier own peril: http://www.investorguide.com/article/7093/chicos-chs-is-an-undervalued-play-on-rebounding-retail/

[Porgie Tirebiter]

We have an earnings beat, which anyone paying any real attention could see coming.

Chico's and BM/WH are in the highest of the high end markets. No recession for those folks.

Cha-Ching!!!!

[Porgie Tirebiter]

Coldwater Creek misses earnings two days ago, and CHS is taking a serious punch in the gut.

The market is screwing up here, these two companies don't really even serve the same market. Opportunity is knocking.

Just bought a few hundred shares as keepers below $10, and three Dec. $8 calls as a trade.

The calls have a pretty wide B/A spread with the ask at 2.30, but my limit at 2.10 was filled in minutes.

[OrnateSilk]

New price target is $15.00. Wish I had the money to buy more shares when this was $1.97!

[GotOptions?]

Options for Dummies from the "for Dummies" series is

available on Amazon.com and its a good read, especially

read, study and understand straddles in my opinion, it

protects your upside and downside so you can make money while

protecting downside at the same time. Simple trade buy a

call and put at the same strike level way out in the future

using "leaps" for 2011 for example. Usually January. This

way you will have an investment that is idiot proof meaning

you wont care if it goes up or down as long as it does

something. But there are alot of ways to play options

practicing by buying a straight call or put is good practice

and you can buy them for as little as 5 dollars per contract

( which is 100 shares ), but commonly for 50 to 500 dollars

or higher. If you buy them before the underlying stock

reaches the strike price just as it is passing through the

strike the % gains are the largest.


I would have given up on the markets if it wasnt for options,

they are really fun to watch and good earners as well.

[OrnateSilk]

Anything. Everything. I know nothing about options. But it sounds like maybe I need to start researching them....

[GotOptions?]

I dont know why everyone isnt using options, If you buy a call the price appreciates about 4 to 5 times faster than buying the stock directly. The options do expire though so that can be a downside. What do you want to know ?

[OrnateSilk]

hehe

I wish I had been able to buy more share when it was under $2!

Although, I did pretty good where I was. Made more there than I would have made holding CHS and selling at $10/11.

I did take advantage of HOTT's fall after the release of the Q1 profits but poorer forecast for Q2. Seems to be a good decision.

You need to explain options to me. :)