QUOTE AND NEWS
Reuters  Feb 19  Comment 
U.S. authorities are investigating whether a hacker is behind the online publication of a cache of Morgan Stanley's client data and not the financial adviser who was fired in connection with the breach, the Wall Street Journal reported, citing...
New York Times  Feb 19  Comment 
Israel has unveiled the largest collection of medieval gold coins ever found in the country, a cache accidentally discovered by amateur divers.
New York Times  Feb 5  Comment 
The company, based in New York, said that it would keep running its business, but it also would continue to close stores and sell or renegotiate some of its leases.
Benzinga  Feb 4  Comment 
Sparton Corp. (NYSE: SPA) shares fell 10.98% to touch a new 52-week low of $20.27. Sparton reported Q2 earnings of $0.16 per share on sales of $85.6 million. RadiSys Corporation (NASDAQ: RSYS) shares dropped 25.08% to touch a new 52-week low of...
Wall Street Journal  Feb 4  Comment 
Women’s dress and formalwear retailer Cache Inc. filed for Chapter 11 bankruptcy-court protection, the latest in a string of mall-based retailers seeking to restructure or liquidate through the protection of the courts.
New York Times  Feb 4  Comment 
Journalists at Ming Pao have jousted with the paper’s chief editor this week over his decision to shift the position of an article in Monday’s edition about a cache of documents from the Canadian Embassy in Beijing during the lead-up to the...
Wall Street Journal  Jan 26  Comment 
Post Holdings Inc. has agreed to buy privately held MOM Brands Co. for $1.15 billion in a deal that will add Malt-O-Meal and Frosted Mini Spooners to Post’s cache of cereal brands.
TechCrunch  Jan 20  Comment 
 Robots need ketamine too! And to supply their robot with drugs a group of Swiss techno-artists programmed an agent to randomly buy an item on a random darknet site with bitcoin, resulting in a cache of drugs and other contraband that, at first,...
Benzinga  Jan 20  Comment 
Analysts at B. Riley initiated coverage on shares of Cache Inc. (NASDAQ: CACH) with a Neutral rating. The target price for Cache is set to $0.20. Cache shares have declined 96.09% over the past 52 weeks, while the S&P 500 index has gained...




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Cache, Inc. (CACH) is a specialty retailer, which operates stores selling women's apparel and accessories under the names Cache and Cache Luxe. Each of these store concepts carries its own distinctive brand merchandise, which includes sportswear, dresses, and accessories (jewelry, belts, and handbags meant to complement the sportswear and dress categories). Cache targets women between the ages 25 and 45. Cache Luxe is the company's newest store concept that was rolled out to replace the Lillie Store concept. Cache Luxe stores will offer a larger selection of casual and evening apparel and accessories at higher price points. Meanwhile, the company recently decided to close its Lillie Rubin stores by the end of the third quarter. The company ended 2007 with 296 total stores, primarily situated in central locations in high traffic and upscale malls throughout the US. Cache also sells merchandise online through its website: www.cache.com.

The investment thesis for buying shares of Cache is the strength of the company's core Cache store concept, its direct sourcing efforts, and its healthy balance sheet.

Cache believes it can expand its total store count to 350 Cache stores, up from about 300 stores today. Part of the plan has been to increase its total square footage in the mid-single digits. Along with ramping up its store count, Cache has also been progressively refurbishing existing stores to enhance the customer-shopping experience. In addition, the company is not growing just for the sake of growth its strategy is to improve its profit margins with solid sales growth. Specifically, Cache's long-term growth strategy includes significantly increasing its operating profit margin to 15%, up from 7.5% in 2005, 6.3% (excluding Lillie Rubin exit costs) in 2006, and around 3.4% in 2007. To facilitate its profit margin expansion, the company's strategy has been to reduce the number of stock keeping units (SKUs) in its stores and the number of vendors from which it buys. Cache also has established a merchandising process that provides it with shorter product lead times. The shorter lead time enables the company to alter its merchandise mix to take advantage of popular offerings and reduce or eliminate unpopular items. The combination of a smaller number of product offerings on its shelves, fewer vendors, and shorter lead times enables the company to better manage its inventory. This should help minimize working capital requirements and boost profit margins. With that in mind, the company announced the acquisition of its largest supplier and believes it can have 40% of its merchandise directly-sourced by year-end 2007. This should help boost profit margins in 2008 and beyond. By seeking to grow its business profitably, Cache should be able to smartly manage its long-term store expansion, which should lead to several years of strong sales and earnings growth. In addition, the closing of its poorly performing Lillie Rubin stores should help boost profit margins. For the last two years, Lillie Rubin has been a consistent drag on the company's sales growth and profit margins. Additionally, the company maintains a pristine balance sheet with just $4.6 million in long-term debt with a debt-to-equity ratio of 4.2%. Cache's balance sheet and solid cash flows provide the company with the financial flexibility to internally finance its long-term growth plans, weather the current spending slowdown, or buyback shares. Note: the company recently announced a 3 million share buyback.

Lastly, the stock is down about 60% in the last twelve months, due to difficult environment for retailers and the company's soft results. But, we expect the company's performance to improve in the quarters ahead. We view this level as an attractive entry point for purchasing the shares.




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