Bernard Chaus Inc. (fka CHBD)

[MikeDDKing]

Here are some estimates for Q3:

Next quarter (Q3 ending March 31) is CHBD's seasonally stronger quarter. Their revenue has been stronger year over year for the past three quarters. The average revenue for the March quarter in the past three years has been $42M with a range of $40-$44M. I'm thinking that this year revenue will come in the range of $42-$46M. I'm guessing GM will come in at roughly 30.5%. I'll assume SG&A of $10.4M, interest expense of $270K, a 7% tax rate, and a diluted share count of 38M shares. That translates to earnings of $0.052-$0.082. I think that higher earnings are quite possible but I don't want to set the expectations too high.

Q3 earnings of $0.052-$0.082 would translate to a first nine months earnings of $0.119-$0.148. My expectations are for the stock to run to the $1.30 to $2.00 range if my earnings prediction is correct. I also think that it may run up in anticipation of the earnings.

Mike