Tuesday, August 7, 2007

Duckwall-ALCO Stores Inc

Duckwall-ALCO Stores Inc is a NASDAQ listed security that has been trading in a range between $33.67 and $42.06 over the past year. With 3,804,220 shares outstanding, a recent price of $39.67 gives a total market capitalization of $152,206,836. While there are certainly larger companies, Duckwall-ALCO Stores Inc has definitely earned its place in the pack. Last year, Duckwall-ALCO Stores Inc created $0.75 in earnings for every share outstanding.

Duckwall-ALCO Stores Inc is currently priced by the market at 49.10 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Duckwall-ALCO Stores Inc could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

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