CHS stock: March 9, 2021 | 35% gain | Yahoo -> Finance -> Conversation

March 9, 2021 

I checked CHS stock when EXPR went up yesterday. I noticed that the price went down around $2.0 dollars. I know that CHS stock is easy for wallstbets to push the price up. 

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Just some thoughts before you jump ship too soon.

There's a sector rotation taking place from stay at home (technical term, not literally) to reopening stocks. This will continue as covid is dwindling and appears to be on the way out.

It has been brutal on apparel retailers. That's the past. The market looks forward. They say by about 6 months. So this stock should be priced for September. Right before the best selling season for all retailers.

In the first half of 2019 this stock was trading for $6.00.
When the pandemic was declared in March 2020 it was trading at $3.00. Now one year later it's again at $3.00.

However this is a much different company.

1 they are expanding their best brand (soma) to their existing outlets with store in store. Soma currently only has 259 boutiques. They have the potential for 900 to 1,000 additional outlets. This brand has grown 10+ % over the last 2 years. This will increase sales and profitability with very little investment needed.

2 the management has cut expenses by 20% over the last year. This will drop straight to the bottom line (net profit).

3 Covid has kept many of their shoppers away. That is changing as the vaccinations are going to the senior population first. This will lead to increased sales at Chico's (their largest brand with about 600 stores). Off the top of my head I can't remember the exact number.

4 Christopher & Banks is liquidating about 450 stores. Their customers are prime candidates for Chico's to target as new customers. Again increased sales.

This stock will be much higher in the very near future.

Ms. Langenstein (CEO) and Ms. Brooks (chairwoman) have done an excellent job saving this company. Now it's time to benefit from that work. Sales are the missing ingredient (see above comments).

The economy is primed. Government stimulus, tax refunds coming, high savings rate and sales are coming. No doubt about it. Easter, socializing is upon us, missed weddings on top of new weddings, etc.

People have been self distancing for over 1 year. They are ready to cut loose. They will need a new wardrobe for all this.

Just my view.