Chico’s FAS

Alan Brochstein Takes a Look at Shoe Stores I have a confession: I hate to shop for clothes. In fact, except for groceries and wine, I don't like to go to any stores, though I make an occasional exception for Men's Wearhouse (MW). So, it's somewhat surprising to me that I am fascinated with retail stocks. I have shared my ideas on this blog frequently, and many have proven successful. One that comes to mind was the J. Crew Group, which agreed to be acquired shortly after I wrote about it two years ago at 43.50, a big premium to the 32.11 level at the time I wrote my article . Notice, too, I had cited Chico's (CHS) as attractive as well, and it has doubled since then, while the third stock has remained relatively unchanged. My modus operandi in the retail space has been honed over the past decade or so. Unlike with stocks in other sectors, I tend to accept that retailers tend to go in and out of favor with their customers rather frequently. This leads me to employ a mean-reversion strat...

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