Collective Brands: Opportunity Afforded by Myopic Market
Jonathan Booth submits:
Collective Brands (PSS) is a major player in the footwear and accessories market and owns such brands as Payless ShoeSource, Saucony, Sperry Top-Sider, Stride-Rite, and Keds. Each of PSS’s brands serves a targeted market and serves those markets well. The company’s primary target consumer is lower income but still fashion conscious consumers.
Overall, PSS has fantastic management, in my opinion, and highly efficient and effective processes. Combine these traits with a penchant for innovation and strong cash generation capabilities, even through the recession, and you have the makings of a formidable company.
Opportunity Presented by Uncertainty
We first analyzed this company last December but felt at the time that the margin of safety at the then-current stock price of roughly $20/share was not sufficient for us to enter the stock. Fortunately for us, the market’s general fear of near-term uncertainty has worked in our favor. This stock fell 12% immediatelyComplete Story »