Monday, December 04, 2006 9:31:29 PM
SNKI.PK - Sales and earnings up, # shares outstanding down for http://www.swankinc.com/. Sales were up 28% in the latest quarter. Assuming sales are up 25% in the next quarter (its biggest) and using last year's net profit margin, Swank will see sales of $37.7 million and earnings of $4.3 million. Using the 200K reduction in fully dilluted shares to 6.020 million shares that translates into 4th Qtr EPS of $0.71. Swank earned $0.69 in the first nine months of the year so we are looking at full year earnings of $1.40 which translates into a P/E of 4.6. Applying a resonable P/E of 10 translates into a share price of $14.00. Since sales and margins have been going up rapidly the forecast assumptions are probably on the conservative side.
Swank looks like a very good buy at this price with little downside risk.
Swank, Inc. engages in the importation, sale, and distribution of men's accessories in the United States. Its products include leather accessories, including belts, wallets, billfolds, key cases, and card holders. The company also distributes men's jewelry, such as cuff links, tie klips, chains and tacs, bracelets, neck chains, vest chains, collar pins, key rings, money clips, and suspenders. The company primarily sells its products through department stores, specialty stores, and mass merchandisers. As of December 31, 2005, the company operated eight factory outlet stores primarily to distribute excess and out of line merchandise. Swank, Inc. was founded in 1897 and is based in New York City.
Swank looks like a very good buy at this price with little downside risk.
Quarterly Information
Period Ending 30-Sep-06 30-Jun-06 31-Mar-06 31-Dec-05 30-Sep-05
Total Revenue 33,172 26,447 22,167 30,712 25,934
Net Income 3,095 976 24 3,481 915
Net Profit Margin 9.33% 3.690% 0.110% 11.330% 3.530%
Miscellaneous Information
Trailing P/E (ttm, intraday): 5.31
Price/Book (mrq): 3.17
Return on Equity (ttm): 89.60%
Total Cash Per Share (mrq): 0.055
Book Value Per Share (mrq): 2.048
Shares Outstanding: 6.07M
Swank, Inc. engages in the importation, sale, and distribution of men's accessories in the United States. Its products include leather accessories, including belts, wallets, billfolds, key cases, and card holders. The company also distributes men's jewelry, such as cuff links, tie klips, chains and tacs, bracelets, neck chains, vest chains, collar pins, key rings, money clips, and suspenders. The company primarily sells its products through department stores, specialty stores, and mass merchandisers. As of December 31, 2005, the company operated eight factory outlet stores primarily to distribute excess and out of line merchandise. Swank, Inc. was founded in 1897 and is based in New York City.
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