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Forbes  Jul 22  Comment 
There's a lot of dragonglass in Game of Thrones - in fact, a massive cache of it was found that will one day be vital to the resolution of the story. So where did it all come from? I've been scouring through the books, and I think I've cracked the...
guardian.co.uk  Jun 7  Comment 
While the Oxford Circus flagship store is a ‘destination’ shop, many branches outside London feel like relics from a pre-digital age There was a time, for many British teenagers, when no Saturday was complete without a trip to Topshop. It was...
Clusterstock  May 12  Comment 
LONDON — The Financial Conduct Authority (FCA) is delaying a verdict on its probe of Barclays' 2008 Qatari funding deal after the bank handed over a cache of "significant" documents to the regulator. The Financial Times reports that Barclays...
Financial Times  May 12  Comment 
Huge cache of ‘significant’ documents pushes back inquiry
MarketWatch  May 5  Comment 
Hackers have released emails from the campaign of French presidential candidate Emmanuel Macron just days before voters go to the polls, according to media reports late Friday. The nine-gigabyte cache of emails was posted by an anonymous user on...
New York Times  Mar 25  Comment 
Paramilitary troops have been working to flush out a group of Islamist radicals holed up in a building in Sylhet with a large cache of ammunition.
Benzinga  Mar 21  Comment 
The local news has finally done it. It’s run out of things to jabber about. No more lost cats triumphantly wandered home. The field of star students has been exhausted, and every variation of grandma’s chili has seen sufficient...
TechCrunch  Feb 2  Comment 
 Progressive Web Apps, which are basically sophisticated web apps that are able to use features like push notifications and a local cache to give users a native-like experience, have been on Google’s radar for the last few years. While they...
New York Times  Jan 30  Comment 
A cache of tiny sea creatures found in central China, in rock strata said to be 540 million years old, is described in the journal Nature.
Motley Fool  Jan 13  Comment 
Microprocessor giant is offering a technology that it hopes will deliver the best of both worlds in desktop computer storage technology.




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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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