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 specialty retailer Charming Shoppes
So What: It's been a day of buyout excitement with OfficeMax
Now What: Could a Charming Shoppes buyout happen? Well sure, in theory it could. But speculating on takeovers that aren't even at the rumor stage is a terrible idea. The company's income statement hasn't looked particularly good lately as consumers have been pinched by the recession, but it does have a net cash position on its balance sheet and continues to produce solid free cash flow. For investors that have Charming Shoppes on their radar, the best bet is to focus on the company's underlying business and financial performance and not worry about pie-in-the-sky buyout hopes.
Interested in more info on Charming Shoppes? Add it to your watchlist here by clicking here.
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