Spotlight Author At Seeking Alpha

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October 16, 2007 | Others | | Author Asif

I wanted to thank the folks at Seeking Alpha for making me their spotlight author today. I have been contributing content to Seeking Alpha since December 2005 and the relationship has certainly been very beneficial both in terms of the exposure my investment newsletter has received and some of the insightful comments on my articles.

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  1. David Jackson
    September 17th, 2007

    Asif, it’s a pleasure and honor to have you as one of our contributors! There’s a ton we plan to do for contributors in future, and hopefully this is just the start. Best, David

  2. sunil
    September 28th, 2007

    Do you think GYMB is still worth holding? It has been going down crazy.


  3. Asif
    September 28th, 2007

    Sunil, I do not see anything that is fundamentally wrong with Gymboree at this time and hence plan to retain it as a long-term core holding in my personal portfolio. While its competitors are posting declining sales, Gymboree is not only increasing sales, it is funding its expansion from free cash flow. Take a look at what happened to SanDisk after we added it to our portfolio back in November 2006. By March 2007, the position had lost almost 25% but in the ensuing months not only recovered all those losses; it is currently showing a profit of almost 15% in our portfolio.

    However with terrible housing data and low consumer confidence, things could be weak over the next few quarters and this is hurting most retailers even if they are companies with excellent management teams. Holding or selling Gymboree comes down to deciding what your time frame for the stock is. In the short-term the stock could stay flat or even drop further but I still believe this is a great long term position unless the data suggests otherwise in the coming quarters.

  4. JK
    October 5th, 2007

    Asif, any idea when Netsuite IPO will open.  I have long deposited funds with etrade but see no signs of the IPO date yet!  Thanks.

  5. Asif
    October 5th, 2007

    JK, I have been getting a few emails about this and it appears that NetSuite has not released any additional information through their IPO website nor updated their S1 filing with the SEC.

    I will post an update on the blog as soon as I find any additional information.

  6. Saj
    October 5th, 2007

    Hey Asif,

    I wonder if you had compared Gymboree to Children’s Place? (PLCE). What are your arguments for preferring GYMB over PLCE?


  7. Asif
    October 6th, 2007

    Hi Saj,

    Before picking Gymboree, I not only did a survey of a few new moms but also read multiple reports about Gymboree (GYMB), Children’s Place (PLCE) and Carter’s (CRI).

    My reasons for picking Gymboree over Carter’s are discussed in detail in the blog entry Stocks That Almost Made The Cut: June 2007.

    As I mentioned in the June 2007 investment newsletter, Gymboree also has better operating margins and earnings growth than Children’s Place and Carter’s.

    Also consider the fact that while Gymboree beat earnings expectations and increased its full year forecast, Children’s Place posted a loss in the second quarter and lowered its full year forecast because its Disney licensing agreement may be in jeopardy. I discussed Gymboree’s quarterly results in detail in this blog post.

    Children’s Place has indeed paid a price for this and its stock is down more than 50% in just three months. With the recent departure of its CEO, it is possible that the stock may rebound a little but I would prefer to stick with a "best of breed" company in this challenging retail environment.

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