Good Time to Buy DSW?

Let’s talk about DSW (NYSE:DSW).

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Hey, it’s a shoe-lover’s dream. The company has 294 stores in 42 states - but for shareholders, it’s been something of a nightmare, mostly because of terrible execution.

In 2Q of 2012, management warned. In 4Q of 2013, management warned.

Nevertheless though, consensus for FY15 continues to edge up -- now to $1.84 from $1.77.

The challenges really shouldn't be demand, I think demand’s going to be there. But topline cost has been an area I don’t like, it’s been somewhat troubled – we do expect that to improve.

In the meantime, the insiders are buying, it’s not a lot but they have been nibbling. But their buys have been double their sale, I like the fact they’re putting some skin in the game.

If you take a look at the chart, it’s beginning to lift off a very strong bottom of $30. It has a clear shot to $35, through there it would take a few quarters, maybe a year or so, but I think it has potential to $44.