NEW YORK, Dec 28 (Reuters) - Saks stock is cheap after falling more than 80 percent in the past year as the luxury store chain operates in one of the most difficult retail environments in a long time, Barron's wrote in its Dec. 29 edition.
Even though same-store sales have declined sharply in recent months, Saks is faring better than its peers, and is cutting capital expenditures to $75 million next year from $125 million this year, Barron's wrote.
Owning some of the most valuable properties in the cities in which it operates stores also gives Saks' stock support, it said.
In normal times, Saks could earn 50 cents to 60 cents per share, according to money manager Nicholas Galluccio of Teton Advisors, for a valuation multiple that implies a stock price of $5 to $7 per share, Barron's wrote.
Saks shares closed at $3.82 on Friday in trading on the New York Stock Exchange.
(Reporting by Phil Wahba; editing by Gunna Dickson) Keywords: SAKS/ (phil.wahba@thomsonreuters.com; +1 646 223 6128; Reuters Messaging: phil.wahba.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Even though same-store sales have declined sharply in recent months, Saks is faring better than its peers, and is cutting capital expenditures to $75 million next year from $125 million this year, Barron's wrote.
Owning some of the most valuable properties in the cities in which it operates stores also gives Saks' stock support, it said.
In normal times, Saks could earn 50 cents to 60 cents per share, according to money manager Nicholas Galluccio of Teton Advisors, for a valuation multiple that implies a stock price of $5 to $7 per share, Barron's wrote.
Saks shares closed at $3.82 on Friday in trading on the New York Stock Exchange.
(Reporting by Phil Wahba; editing by Gunna Dickson) Keywords: SAKS/ (phil.wahba@thomsonreuters.com; +1 646 223 6128; Reuters Messaging: phil.wahba.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.