Joez, the rocket ship... watch out True Religion

In the market for high end denim, Joes Jeans is becoming a major force to be reckoned with. The turnaround has come and the women's business, has done exceedingly well. The selling is great and the product is now in a bigger bond with placement next to Seven For All Mankind and Citizen Jeans in most retail locations.

NYSE: JOEZ - EPS: $0.02, Market price $1.29 per share

The best note of future growth is organic financing. Internal retained earnings are the fuel to opening new store accounts and retail stores. Joez has fully penetrated the luxury denim sales. There is a full line and full look. There will be several full price stores in the next year, they are looking at several places now to lease. The president called this growth "aggressive".

"Our goal is to have 50 stores if all goes well." The president of Joes Jeans said.

The denim line is successful, but there is more to their mix.

"The most successful piece of non-denim business is the Knitt Top," The president said.

The inventory for the last year was $20 million in closing inventory with about half that being fabric for this quarter. The company has a very only about 100,000 yards on order. The company, Joes, has their designs set out to 10/30/2008. They plan to use those. Eighty percent of their production is coming out of Mexico and Morocco (80% to 98% production over the next year overseas).

Excess and overruns will be offered to the two outlets. One slated for New York and the other outlet unknown location will receive about 15,000 pieces a year and will not start creating products for these store specifically for some time.

JOEZ - this is a good pick for 2008. This is a company, that even in a bear market, has had a positive earnings growth and a great outlook for future growth!