Review of Previous Undervalued Company

4 Weeks Ago- Stein Mart (SMRT)

Stein Mart has had a very good month since we targeted it as our Undervalued Company of the Week.  When we reviewed it, the company was trading at $12.09 (9/1/06).  Today it is at $16.03 – a 33% gain.  In our article, we particularly liked the company’s lack of long-term debt, and the PE and PB ratios were attractive at the time.  The increase in price reflects the fact the company has beat earnings expectations the last few quarters, and was recently upgraded to a strong buy by an analyst.

We believe Stein Mart is still a good value for the enterprising investor following Benjamin Graham’s strategies.  We believe Stein Mart has potential to reach $18 within the next few years, but must caution that the company’s stock is currently trading within our margin of safety and may actually be fairly valued.

Neither of us held a position in Stein Mart at the time of publication.  Also, please read our disclaimer.

Please register and discuss this article in our forum.  Your input is appreciated.

 

 



Posted

in

by

Tags: