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$2.05 0.12 (6.22%)
2/9/2010 4:00 PM

Joe's Jeans, Inc. (JOEZ)

CAPS Rating:
****

Principal business activity has evolved into the design, development and worldwide marketing of apparel products. Products consist of branded and private label denim and denim related products.

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Joe's Jeans, Inc. At A Glance

Current Price: $2.05
Last Trade Time: 2/9/2010 4:00 PM
Open: $0.00
Previous Close: $1.93
Daily Range: $1.96 - $2.05
52-Week Range: $0.22 - $2.04
Volume: 1,910,037
Market Cap: $126.31M
P/E Ratio: 4.71
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JOEZ VS S&P 500 (SPY)

News & Discussion Boards

Top Bull Pitch

Recs

3

Joe's Jeans, Inc. (JOEZ)

Avatar EPS100Momentum (69.51) Submitted: 2/04/10 12:24 PM

JOES JEANS CEO said "Significant Expansion in 2010" for Joes Jeans.
http://seekingalpha.com/instablog/521936-eps100momentum/47271-fashion-trends-are-your-friends-today-s-hot-fashion-trend-in-hollywood-is-joes-jeans

Replies: 1 | Reply | Permalink

Top Bear Pitch

Recs

2

Joe's Jeans, Inc. (JOEZ)

Avatar PainterPoker (47.49) Submitted: 2/04/10 11:41 AM

I think I may have made a mistake shorting this one... I'm looking forward to changing my position in 6 days. Maybe..
$170 for a pair of jeans doesn't sound like a good buy to me or anyone I know. How popular will this brand become with the regular joes and janes? Or will they start to look more...More

Replies: 2 | Reply | Permalink

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Recs

0

 (JOEZ)

Avatar Pr0metheus (< 20) Submitted: 2/09/10 10:36 PM : Outperform Start Price: $1.89 JOEZ Score: 8.01

I'd rather look like a fool with my pants on the ground, than pay $158 for a pair of jeans (Joe's cheapest pair of men's jeans). Even if Bill Gates gave all his fortune to me, I still wouldn't pay that much for jeans.

But there are people who would (and do), and there are enough of them to make a very profitable market. It is extremely important that one understands the target audience for Joe's Jeans before making a call on the stock. The customer who shops for Joe's Jeans or True Religion isn't looking for jeans, they're looking for JEANS (at the likes of Macy's and Bloomingdale's, not Wal-Mart and Target). And they won't stop until their wardrobe is complete. If a recession is in effect, then they'll save up the money to avoid scaling down to a cheaper brand because part of their social life is at stake.

I mentioned profit? Let's look at the data for 2009. Sales were at $80.12 million (up 15% from 2008), and their net income looks even better at $25.52 million (up a whopping 400% from 2008). Earnings for the last quarter came in at $0.33/share (up 1,000% from 4th quarter 2008). The one analyst that follows the stock woefully underestimated 4th quarter earnings at $0.01/share. Positive cash flow ($10 million) is always a good thing, especially for a growing business like Joe's which operates in an industry where competition is fierce.

About that competition. True Religion (TRLG) is no push over. They're almost three times the size of Joe's, and their financial sheets look just as good. They also have more brand recognition. But Joe's, although a new-comer, is not exactly unheard of. They have billboards posted in their stomping ground of California, and their jeans share rack space with True Religion at Macy's/Bloomingdale's. Both JOEZ and TRLG outsource their manufacturing, allowing them to focus on the pulse of fashion and thereby design the next big trend.

Who wins the JOEZ vs TRLG battle depends on which one customers decide is more hip and trendy. That call is beyond this bourgeois Fool's ability to predict (anybody got a coin?). But then, I don't need JOEZ to "win". I'm perfectly satisfied with JOEZ being the Pepsi to TRLG's Coke, which I feel is a reasonably attainable position for JOEZ to reach at this time.

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Recs

1

 (JOEZ)

Avatar Charming56 (< 20) Submitted: 2/06/10 3:57 PM : Outperform Start Price: $1.80 JOEZ Score: 13.44

Following 20Percent PM advice

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Recs

3

 (JOEZ)

Avatar EPS100Momentum (69.51) Submitted: 2/04/10 12:24 PM : Outperform Start Price: $1.89 JOEZ Score: 8.86

JOES JEANS CEO said "Significant Expansion in 2010" for Joes Jeans.
http://seekingalpha.com/instablog/521936-eps100momentum/47271-fashion-trends-are-your-friends-today-s-hot-fashion-trend-in-hollywood-is-joes-jeans

Report this Post Replies: 1 | Reply | Permalink

Recs

2

 (JOEZ)

Avatar PainterPoker (47.49) Submitted: 2/04/10 11:41 AM : Underperform Start Price: $1.70 JOEZ Score: -23.18

I think I may have made a mistake shorting this one... I'm looking forward to changing my position in 6 days. Maybe..
$170 for a pair of jeans doesn't sound like a good buy to me or anyone I know. How popular will this brand become with the regular joes and janes? Or will they start to look more like The Gap and capture a bigger share of the market?

Report this Post Replies: 2 | Reply | Permalink

Recs

0

 (JOEZ)

Avatar dunloggin (69.72) Submitted: 2/03/10 11:15 PM : Outperform Start Price: $1.96 JOEZ Score: 6.21

Great numbers, looking at some growth here.

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