The Cheap Investor
03/21/2017 2:50 am EST
Container Store Group (TCS) is the nation’s leading retailer of storage and organization products and the only company solely devoted to that category of retailing. It sells 11,000 products in 86 store locations nationwide.
Since its inception, the retailer has nurtured an employee-first culture and couples its one-of-a-kind product collection with a high level of customer service delivered by its highly trained organization experts. It has been named to Fortune magazine’s list of 100 Best Companies to Work For for 17 years in a row.
Recommended last September at $5.33, the stock shot up 57% to a high of $8.34. Now that the price has fallen, and we have reviewed its third quarter financials, we think it’s time to recommend the stock again.
This profitable company has a good balance sheet with $18 million ($0.38 per share) in cash, a book value of $4.39 per share and debt of $338 million. For the quarter ended December 31, 2016, institutional investors purchased 1.2 million more shares than they sold.We think the stock has the potential to move 25% to 50% from this low point.