Anybody else looking at State Stores (SSI)?
I used to own them years ago, around $4/share. The stock ran up to like $7/share so I promptly sold. It then proceeded to go up to close to $30/share and they raised the dividend. HAHAHA.
Flash forward to today....SSI is at $7/share with an $.80 dividend. It is trading at 1/2 book value. Trailing P/E is just over 8. The balance sheet is reasonably strong....2.2 current ratio, $172MM debt vs. EBDITA of $120MM.
In the latest quarterly earnings, they missed by $.10/share (revenue decline of 3.5%) prompting mass panic on "the street".
SSI has also reported that SSS for the holiday period will be down about 2.5%.
To further add insult to injury, they are headquartered in Houston TX. A good chunk of their stores are located in the oil patch and will undoubtedly suffer. Further complicating things is that they are department store operator. Of course, department stores are a thing of the past?
To counter that, most of their locations are in smaller towns and are somewhat shielded from larger competition.
I think these guys are OK operators. The stock is selling at very low points.