The Children's Place, Inc. PLCE

Squeeze is coming. Just you wait.

We will reach 7$ today.
Big squeeze is coming!!

Smells like a squeeze…

Bring it to 5$ please I want to buy more.

They are doing all the right things. Value will come over time.
This is a great LT investment. 10% extra duty will apply to all countries it is not a big deal for the LT. China is less than 10% of their sourcing matrix. They will raise prices and get some discounts from suppliers. As a long term veteran (over 30 years experience in the apparel industry) I believe this is the best LT investment.
It will reach 50-60$ in 5 years. 20$ in 2 years.

20$ by the end of 2026. Mark this post.
This stock is not for short term traders.
Buy, hold and enjoy the appreciation over time.

Tariffs are relevant for US sales only which is ~75% from sales. They source from many countries in Asia and Africa and have a well diversified portfolio where Vietnam and Bangladesh represent more than 15% each(during 2023). China is probably less than 10%.
10% duties on all purchases (except some African countries) will not kill the business. They need to get 3-5% discount from suppliers and raise selling prices by 5%.
It is not as bad as it looks. Every competitor has to do the same.
In 2024 they managed to make 4% EBIT in a transition year next year they will improve.
Q1 will be challenging for all apparel companies. Improvement will take place in H2. Buy hold this stock will get to 20$ by end of 2026.

Not a bad report. They managed to finish the year and the quarter with nice adjusted operational profit. They cleaned up all the dirt and close many losing stores. The finance costs are not representative for the future and also so is the taxes on income. They still need to improve the capital structure and get a better deal from the banks.
The company made 52.7$ million adjusted operating income on 1.386$B sales (~$90 million EBITDA) and this will improve in 2025. The 10% tariffs will hit all competitors and they will need to raise prices by at least 5% - not a big deal. Just use 6 times $100 million EBITDA minus $300 million net debt you get ~$300 million market cap or 14$ a share.
Once they start growing it will be much higher EBITDA and multiple.

We have a date… April 11.
Looking forward for great earnings!

Earnings will be out soon. Q4 was a good quarter with sales UP to last year. GM much better and nice profitability & CF.
Mithaq are doing a great job fixing the company.
2025 is going to be a great year with top line growth and bottom line of at least 3$ a share (we have now post rights offering 21 million shares), and much reduced debt.
Stock is way undervalued!