Zero Moat, Dying Industry, Anemic Business Model, Creates A Favorable Stock Price

New York and Co (NWY) hit its 52 week low on  May 16. This coupled with an oversold multiyear price decline and stable fundamentals creates a discount. Further, the market is pricing NWY as if its ultimate future matches that of recent bankrupt peers Pacific Sunwear, Wet Seal, and others.

The company is a specialty retailer of women’s apparel and accessories, headquartered in New York and founded in 1918. It’s a modern wear to-work women’s retailer offering feminine fashion, trending and versatile styles. The target customers are women between the ages of 25 and 45. Lastly, as of January 2017 NWY operated 466 stores in 39 states along with online presence 

Some investors can view NWY as a value trade if you’re unwilling to wait for improved and convincing execution. Apparel stores’ industry negatives are declining mall traffic, expensive leases, falling sales and the shift toward online shopping. But New York and Co ‘s current market price, historical and relative cheap valuation may offer an opportunity.

This post started as an effort to find survivors within a devastated industry. My comprehensive thoughts are to be published at end of this week. However, I hate to watch ideas move higher while I struggle to budget time for release, hence today’s note.


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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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