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Thursday, 03/12/2020 1:20:18 PM

Thursday, March 12, 2020 1:20:18 PM

Post# of 1193
FRAN $10 Million dollar market cap doing over $400 Million in Rev's & will be profitable. Insane price - sales % now UNLIKE most retailers that have a ton of debt killing them FRAN has $18 million & that came about for holiday season where they increased inventory levels by 20% to eliminate hot items out of stock conditions. Remember last CC was on Dec 10th & imo they were suggesting strong 4th Qtr sales with increase in inventory & reduced SG&A plus increase in margins. FRAN up against weakest 4th Qtr in years $119 million in sales prior 3 years was $138 Mil $147 Mil & $134 Mil all 3 very profitable... Last time FRAN was at $3 share price before profitable 2nd Qtr results in August which shot this microfloat from $3 to $21 even at $20 a share = $60 million dollar market cap CHEAP for retailer with little debt that probably will be back to ZERO debt upon this report. Share structure is 3 million shares outstanding & approx 650K Float after insiders & Institutional ownership LINK https://investors.francescas.com/node/5901
Short interest has been dropping down to 727,000 shares short on latest report but very high in relation to float. FRAN has been restructuring since last Jan and put into place a slew of improvements that led to profitable 2nd Qtr the 3rd Qtr had multiple 1 timers & write downs that we probably wont see in 4th Qtr. Also of note the balance sheet has NO goodwill or Intangible assets so net assets after debt = $19 a share = dirt cheap here... One last note keep in mind FRAN runs free standing boutiques small avg size 1300 sqaure feet not a mall based retailer. IMO & could be wrong FRAN reports Rev's closer to $130 million or better... then $120 mil & very profitable Qtr coming up on March 24th..

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