04/05/2007
The stock of dELiA*s Inc.
(DLIA) rose 6.2% this week, despite its volatility today.
Starting on Monday, short-term traders bid the stock up
and then sold "on the news" when dELiA*s announced
that quarterly
results came in above Wall Street's expectations. At
its high point yesterday, the short-term traders had bid
the stock up 17.6% for the week.
Annual revenue for the retailer
rose 45%, expenses fell, same-store sales grew 5%, and the
company swung from a $10.3 million loss last year to a $5.8
million profit for the company's fiscal year.
While dELiA*s may not turn
out to be a streaking comet like Chaparral
Steel Company (CHAP), GameStop Corp. (GME), or past
Primary Stock Portfolio stars such as Marine
Products Corporation, Fording
Canadian Coal Trust, or Gen-Probe,
it is looking like it has turned the corner. And if another
company decides to take over dELiA*s (which often happens
with our Primary Stock Portfolio companies), it may yet
turn out to be a comet in its own right.
Currently the stock of dELiA*s
is up 47.4% from its low back in August. We believe it will
continue its positive momentum.
-Rex M. Jacobsen
Sr. Editor
