Savvy Trades and Investments

[SSKILLZ1]

PLCE

I continue to Like PLCE, and thought they did good enough in q1. I will buy more on weakness.

I'm kicking myself that I didn't buy any down there. The quarter was fine, as I said when I brought it q1 was abnormally strong last year and I didn't expect a great comp. In my opinion they are on track to report double digit EPS this year. I listened to the CC this morning. Sales were really reflected by a horrible March, sales rebounded in April and so far in May. They claimed the stimulus spending in march in 2021, made a tough comp on the sales. I think the margin story on this one is impressive. Cash Flow is really being generated. And they said they are planning being active on the buyback with improved cash flows. Hence I think $10.00 EPS they mention will probably be low despite headwinds in all of the following, tough comps, cotton prices, inflation, etc. I don't think it deserves a high PE, but a 7 PE, times a $10 target gets me in to $70+ FV range, and I feel that is very conservative. Kicking myself I didn't buy any there though. All is just my opinion, and I could always be wrong though.