We are researching a new opportunity in Joe’s Jeans ($JOEZ). The stock has run up this year from around $0.50 per share to the current level of $1.30. Following the extremely favorable earnings report from February 28, the stock has been on a huge run-up, nearly doubling in price. Here is a recent chart:
We think the company may be worth a look. First, the company has very little debt. The company has been profitable since 2007. In 2011 inventory reductions resulted in a significant ($5mm) increase in cash. This indicated an ability to move product off the shelves and into the hands of customers.
With the share price trading above $1, the stock is no longer at risk of being delisted from the Nasdaq.
We will keep monitoring the company. We think there may be a pull-back in the stock which could be seen as a buying opportunity, closer to the $1 level.
Written by Jennifer Galperin. Follow me on Twitter and StockTwits.