One Pants Stock You Want to Get Into

by Jamie Dlugosch | January 21, 2010 4:45 am

Blue jeans are red hot, and consumers are still finding enough nickels and dimes to buy the best brands.

One such brand is Joe’s Jeans Inc. (JOEZ[1]). In fact, people are paying top dollar for denim, and the brands being purchased are also some of the hottest stocks on the Street.

For example, popular denim retailer, The Buckle (BKE[2]), has a market capitalization in excess of $1 billion. In stark contrast, JOEZ has a market cap of less than $50 million. So if JOEZ gets hot, the upside is enormous.

JOEZ rocketed higher on the strength of a positive third-quarter earnings report. Shares were previously bouncing between 60 cents and 80 cents per share. The earnings report pushed shares well above its range to over $1 per share.

Highlights from the report include a sales increase of 16% and steady gross margins at 49%. JOEZ earned 3 cents per share in the period.

The turnaround for JOEZ is just beginning, and that turnaround is coinciding with improvements in economic activity. Those that bought Joe’s are up 64% since I recommended the stock in July. And there are more gains to come. Currently trading around $1.70, I see the stock going to $5 per share in a 12- to 24-month period.

Related Articles:

• 7 High-Profile Dollar Stocks to Watch in 2010[3]
• Hot Profits from 5 Cold Weather Stocks[4]
• 5 Top Small Cap Stocks to Buy Now[5] 

Source URL: https://investorplace.com/2010/01/joes-jean-inc-joez-one-pants-stock-you-want-to-get-into/