Ultimately we must look at the reason that people are really to look for in an investment. Last time I talked about the nature of a business. The life cycle, that I outlined, really corresponds with the FCF, or future cash flows, of the business. That is, the future of the company's ability to make money.
When I think about how this would correspond with investing, Joe's Jeans, traded under the ticker JOEZ. The stock traded for $1.06 just about all day (http://finance.yahoo.com/q?s=joez) and I think that even that is a low ball estimate at what the future holds for JOEZ.
I was watching an MTV program named "Life of Ryan". To me it was not too exciting, but it was on. They younger boy on the show started going through a list of brand names for jeans. Joe's was apart of this small list of designer jeans. While this is nothing to huge, I want to go through the behavioral logic of the issue.
The business model for luxury branding is all about name recognition and perceived value. Joe's has done a great job of leveraging their name into the ranks of Seven for All of mankind and True Religion. It should be interesting to see what direction Joe's goes in the next weeks with all of the financial bull crap out there.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment