Wednesday, October 20, 2010

Chico's FAS, Inc. (CHS)

Chico’s FAS, Inc. (CHS)
CHS is a fashion company with Chico’s, White House Black Market, and Soma Intimates brand names. They are currently trading at $10.25. They currently average 4.82 million shares traded per day.  They do offer a dividend of .04 per share. Chico’s does not have a long history of giving out a dividend. The dividend was put in place within the last year. Chico’s is a company that carries very little debt, other than their short-term debt, which belongs to merchandise.
I feel this is a strong company with great upside. They have a good following and are striving to grow the White House Black Market stores to rival the Chico’s stores. By them carrying so little long-term debt it gives them flexibility to be aggressive in other areas of the business without the fear of incurring expenses and falling further in debt. The importance of being in this position cannot be stressed enough. When businesses are in serious debt their judgment can become clouded. That will certainly not be a problem with Chico’s. Look for them to continue to grow and gain an even stronger following as they develop their branding and prove to be a leader in women’s clothing and clothing accessories. Do not miss out on CHS. It will be trading significantly higher in early 2011, than it is now.

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