Keith added LIZ to the Virtual Portfolio into the close on today’s high Beta pullback just above his quantitative model’s TRADE line of support.
No change to our thesis on the name here but today’s pull back is another opportunity to get involved with our favorite sm-mid cap growth story that we expect to double in 2012. Now that LIZ is a double-digit stock, has largely shed its debt burden, and is beginning to reveal its top-line growth potential, investors are starting to take notice. We think the Street’s numbers are still too low and the stock is trading at a significant discount to the value of Kate Spade alone. Investors will start looking at $1 in earnings power in three years.
Below are links to our 2/27/12 preview to the fourth quarter as well as our take headed out of the print. We also reflect on the 3/13/12 announcement of George Carrera to replace Andy Warren as CFO.