29
Oct

I have a wife that loves to shop.  The recession has only made her a better shopper.  She looks for value and quality for herself and my two daughters.

Today’s alert company is right up her alley!PanGlobal Brands, Inc. (PNGB)

If you’re looking for a good trade, it should be on your radar as well!

The big news recently for PNGB is that they posted record earnings for their most recent quarter.  What got my attention with that fact that it is common knowledge that all consumer discretionary spending has been curtailed severely.  How then can PNGB be posting record revenues?

Let’s take a look:

PNGB

engages in the design, manufacture, and distribution of clothing and accessories in the United States and Canada. It offers women’s apparel, primarily including dresses, skirts, and knit and woven tops under the Tea and Honey, Haven, and Hauteur Mynk brands.

The company also provides junior denim, t-shirts, dresses, and other apparel for girls and children primarily under the Sosik, Scrapbook, and Crafty Couture brands. It sells its products through a network of wholesale accounts.

PNGB sells both their own labels and private label women’s wear.

In my opinion, the strength of a consumer brand is the places that retail their wares.  This is a pretty impressive list:

Macy’s - Dillards - Nordstrom’s - Victoria Secret - Sak’s 5th Avenue - Forever 21 - Top Shop - Hot Topic - Anthropologie - Delias - Henri Bendel - Neiman Marcus - Sears - Arden B - Harold’s - Zummies - Alloy - The Buckle…and many more Source: PNGB Website

A great place to start your due diligence is their own website.
Pan Global Brands Their site is chock-full of great information.

I post this link also because….I am a guy. I am the last guy to pass judgment on style and fashion.  It appears to me, though, that PNGB has the fashion and merchandising acumen as evidenced by their financial results.

I am much more comfortable talking about financial kind of “stuff”…  For instance:

PNGB recorded its best quarterly sales revenue in the history of the Company for the third Q of 2009 ending 6/30/09. Revenues grew 62% over the previous year’s quarter. Sales revenue for the three months ended June 30, 2009 totaled $8,600,000 versus sales revenue of $5,321,000 for the three months ended June 30, 2008. Year to date sales revenue for the nine months ended June 30, 2009 totaled $20,225,000 versus $8,400,000 for the nine months ended June 30, 2009. The full release can be accessed by clicking this link

in my opinion, quality of management is important, too. And, PNGB has a proven leader in Charles Lesser.  The PR announcing his ascension to this important post stated,

Mr. Lesser was the Chief Financial Officer and a consultant to True Religion Apparel, Inc. and its wholly-owned subsidiary, Guru Denim Inc. While at True Religion Apparel, Inc., he helped grow the premium jeans manufacturer from a start-up venture to $140 million in sales revenue and to a $500 million market capitalization.“                                                                                             To read full release: Click here

Mr. Lesser has worked for PNGB for several years as CFO, but now he will have the authority and responsibility as CEO to continue their growth and to increase market share.

Lest anyone forget the True Religion Story.…here is a look at their chart.

PNGB has an exciting chart, too!

So I recommend that you get PNGB on your radar right away. The company is on a strong growth curve, management is seasoned and tested and the stock chart is promising.

This .08 level the stock is near right now seems to be holding very well.  I don’t think there is much downside risk if that is your stop.  On the upside, we’ve seen PNGB trade 200%+ higher in just the last month, so I think there is a LOT OF UPSIDE POTENTIAL HERE.

Good luck and good trading!!

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