Wednesday, June 28, 2006

Bought J. Crew

I was not allocated any shares in the J. Crew (Ticker: JCG) ipo so I purchased some shares @ $24.98. It’s just a small position, but I intend to add to it on any weakness. I’m following the Peter Lynch philosophy on this one. I really like their products and spend quite a bit of my $$$ there so they must be doing something right. There’s plenty of room for store expansion in the US and abroad. This is really a long term growth story. Just take a look at the Gap (Ticker: GPS), which currently has over 3,000 stores compared to only 200 stores at J. Crew. The company plans to open 25-35 stores per year so it’ll be a nice consistent growth.


At July 26, 2006, Anonymous Alaskan Pete said...

Bro, Gap also has other "brands". They own Old Navy, and Banana Repub AFAIK. J-Crew has been around for a long time and hasn't really gotten a lot of traction in expansion. When I was in undergrad they were the hot store, much as Am. Eagle and A. Fitch became hot in this generation.

I like and own some J Crew stuff, but it's hit or miss and their price point is too high IMO. Maybe they do alot of catalog business. For the clientele they seem to be shooting for, it seems that Banana is ahead of them.

And with an overextended US consumer, at the verge of a consumer led recession, discretionary goods like this are the last thing I'd be buying, especially on weakness. I trade trend/technicals and stat arb plays rather than big-picture macro stuff like this though.

Either way, good luck to you.

At July 31, 2006, Blogger Money Turtle said...

I believe in the long term potential of this company. They have a great CEO and respectable growth. As long as they open new stores at a steady rate and same store sales continue to increase; the stock should do ok. This stock currently makes up less than a 1% position in my portfolio. I will add on any weakness. I'm heavily weighted towards the big cap biotechs and pharmas.


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