Monday, September 10, 2007

J Crew Shares Tumbled, but the upside ...

J Crew shares tumbled last Thursday after it missed analyst expectations. The share price continued to lower Friday and Monday. All this is good news to me because I've been eyeing this stock for a while now for a good buying opportunity. There is essentially nothing wrong with the company, and the recent selling was nothing more than the result of the herd mentality. J Crew did well last quarter, but not as well as some expected. One source attributed the off the target results to the fact that they stocked too many dresses which did not sell well. I'd agree. I wasn't crazy about their dresses over the summer, it was a lot of nothing, but your can't overlook the rest of their tantalizing summer line without drooling. Many of my friends and I have been loyal fans of J Crew since our mid-twenties, loving its clean and chic design paired with top quality fabrics. Need I mention the vibrant colors? Now that we're turning thirty, while we've out-grown the GAP, and Express, J Crew has remained at the top of our favorite list. Overally speakings, the company has got healthy financials, and a Fall Collection to die for. Is it too obvious that I'm recommeding a Strong Buy for this company?

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