Collective Brands Shares Surged: What You Need to Know (PSS)

Collective Brands Shares Surged: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of shoemaker Collective Brands (NYSE: PSS ) marched forward 20% after announcing "aggressive actions" to improve its business.

So what: Weak customer traffic has been weighing on Collective Brands, but its plan to close roughly 475 underperforming stores in the next three years should certainly boost results. More importantly, management's bigger picture decision to look into "strategic and financial alternatives to further enhance shareholder value" has triggered speculation that an asset sale, or a sale of the company outright, is a real possibility.

Now what: Don't let this rally prevent you from at least looking into the stock. Even with today's big surge, Collective Brands is still down about 45% over the past six months and continues to trade at a forward P/E discount to rivals like DSW (NYSE: DSW ) and Wal-Mart (NYSE: WMT ) . When you couple that cheapish valuation with a fresh set of potentially value-unlocking catalysts, Collective Brands is certainly worth some research.

Interested in more info on Collective Brands? Add it to your watchlist.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of and creating a diagonal call position in Wal-Mart. The Fool owns shares of Wal-Mart. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.