Zacks is out with an article this morning on selling Cost Plus down to $1.00. From the article:
"Cost Plus is in a tough spot and its business continues to deteriorate. We see no signs that the company will be able to right its ship in the near term. The macro headwinds including housing, credit markets, and food and energy prices are eroding the consumers’ purchasing power, which is hurting its results. What’s more, the company’s losses are mounting and its balance sheet remains weak. This combination does not point to a higher stock price."
While I have not ever shorted a stock, I completely agree with this analysis. The only time my wife and I set foot in a Cost Plus was because someone gave us a gift card. We spent over an hour in the store looking for something that we actually wanted to spend $20 on. We ended up buying some coffee, since we figured that we could always use some.
The only hope investors might have, is if someone buys them out. How does that $4.00 a share buyout from Pier 1 look now?