for a bounce play I think DLIA has much more potential..check this out:
Another well-known stock that has seen its shares fall hard over the past few months is dELiA*s (DLIA - Cramer's Take - Stockpickr - Rating). The direct marketing and retail company that caters to mostly teenagers has seen its share price decline by more than 20% in the past two months and roughly 50% from its April highs.
Investors are concerned that a slowdown in consumer spending will continue to weigh on the bottom line. But at a recent $5.38, dELiA*s is trading at just 0.6 times sales (lower than the industry average of 0.9), has $20 million in cash and has relatively no debt.
The company is set to report earnings on Aug. 30, and a less-than-stellar report could provide a nice entry point into this retailer, which is expected to grow earnings by more than 25% annually over the next three years.
Bernard took over in Fall 2003. Just looking at these numbers, you can tell he's doing something right.
At $130 million market cap, it's a no brainer.
In 2005, management invested through a private placement at a valuation of $175 million. Plus $20 million they raise from rights offerings. Add to that $16 million cash from operations in 2006. The company should be worth at least $211 million or $6.6 per share.