Last week, I recommended Pier 1 (symbol PIR) as the stock of the month for December. The company is now out with their sales report for last quarter (ending 11-27-2010). Same store sales were up 10.2% for the quarter and 11.8% for the first nine months of the year. the sales rise was not due to price cutting as margins increased to 58.5% from 56.6% last year during the same quarter.
These are outstanding numbers, and they provide major momentum as the stock goes into the critical last weeks before Christmas. We should see further increases in the stock price over the next few months. Indeed, if the numbers for the next quarter are anything like those for the third quarter, PIR could easily go up 50% from its current price at $10.14.
No comments:
Post a Comment