Balance sheet is immaculate with nearly $2billion in cash, and the company continues to reduce shares outstanding.
On the conference call we learned that merchandise margin was up 1 percent, and the reason cited was "average unit costing." Using fewer vendors, e-sourcing, counter-sourcing, have helped the company keep costs of goods down.
Below is AlphaNinja's earnings and cash flow projections, and how I arrive at a target price of about $24. The stock is attractive here with a FCFY (free cash flow yield) of 12% , and will be more attractive if it falls to the low teens.
Disclosure - (long GPS)