FRAN
Whether FRAN is overvalued or not is not my point here. I am not saying its a bargain. Just reviewing your points.
1. IMO, Investors completely understand the seasonality, they are aware of seasonality in the retail biz, its not some secret. Investors are not annualizing the .72/share. IMO, most would be very happy, imo, with a .20/qtr for OCT, or perhaps even breakeven.
2. Small profitable retailers do not get 'mid single digit p/e's (is your claim that they get a 5 p/e valuation?). They get far more. I follow a few small retail competitors to FRAN..CATO currently trade at a 14 p/e, and GCO gets trades at a 10 p/e.
