5/18/2017

Zero Moat, Dying Industry, Anemic Business Model, Creates A Favorable Stock Price


New York and Co (NWY) hit its 52 week low on Tuesday 05/16/17. This coupled with an oversold multiyear price decline and stable fundamentals creates a discount. Further, the market is pricing NWY as if its ultimate future matches recent bankrupt peers; Aeropostale, Limited Stores, PACIFIC SUNWEAR, Wet Seal, and others.

Some investors can view NWY as a value trade if you're unwilling to wait for improved and convincing execution. Apparel store's industry negatives are declining mall traffic, expensive leases, falling sales, and the shift toward online shopping. But, New York and Co (NWY) current market price, historical and relative cheap valuation may offer an opportunity.

The post started as an effort to find survivors within a devastated industry. My comprehensive thoughts to be published at end of this week. However, I hate to watch ideas move higher while I struggle to budget time for release, hence today's note.

New York and Co (NWY) is a specialty retailer of women's apparel and accessories.  Headquartered in New York  and founded in 1918. It's a modern wear to-work women's retailer offering feminine fashion, trending and versatile styles. The target customers are women between the ages of 25 and 45. Lastly, as of January 2017 NWY operated 466 stores in 39 states along with online presence www.nyandcompany.com.

To be continued



Long NWY

1 comment:

Thomas Niel said...

I look forward to your analysis; I've looked at NWY several times this year-anytime I go to a mall I pop by head in to complement my analysis of the financials.

Great site by the way, I believe I stumbled on it while reading up on Schmitt Industries.