PLCE

**huangwei** Mon Nov 12, 2007 1:16 am

PLCE
Could anyone comment on Children's Place (PLCE)? It dropped a lot in the past year. However, I think this company is still pretty solid in terms of market share.

1. The market is consistent
2. The cloth prices are more reasonable than GAP kids, Carter's and Gymboree.

Thanks!

**lzhang** Mon Nov 12, 2007 6:45 pm

Re: PLCE
Hi huangwei,

PLCE has its own problem. It failed to file its 10Q due to reasons like auditor quitting, its Disney store operating problem, etc. On the other hand, it put itself up for sale.

Anyway, if it is in a perfect situation, its stock price might be even more perfect. You really need to study hard by yourself to understand the problem, its value, etc.

People are also worried about possible recession so that the consumer spending will be going down to hurt the earnings of those apparel retailers.

In any case, those retailers might be fair valued at current level, or a little bit undervalued, if you take a longer view.

People are going to buy clothing for their kids, no matter economic booming or bursting.

To the clothing price part, I do not think customers are very sensitive to it. You really need a loyal customer base, so that some so-called deals (20% off, $10 off $50, etc) will induce your customers to buy more.

I really hate Gymboree because it always has `deals' so that my wife wants to buy some clothing from it. When I checked at one of the Gymboree stores, it was always filled with eager moms to buy something.

huangwei wrote: Could anyone comment on Children's Place (PLCE)? It dropped a lot in the past year. However, I think this company is still pretty solid in terms of market share.

1. The market is consistent
2. The cloth prices are more reasonable than GAP kids, Carter's and Gymboree.

Thanks!

Disclosure and Disclaimer

The author has a long position in GYMB. The position can be changed without further notice.

This is not an investment recommendation to buy or sell any of the securities mentioned therein. All materials presented here are for information purposes only.

**huangwei** Tue Nov 13, 2007 12:18 am

Thanks, lzhang. It is always a pleasure to read your post. :P

**lzhang** Tue Nov 13, 2007 1:52 pm

Hi huangwei,

You are welcome. It is my pleasure too.

One thing for sure is that the best time to buy any stocks is when its price plummets, when all the pessimistic news are floating around, when people are full of fear about the stock.

In that situation, you still need to study as hard as you can, then make rational judgment, instead of emotional one.

huangwei wrote: Thanks, lzhang. It is always a pleasure to read your post. :P