Usually I like to pose rhetorical questions on this blog, but does anyone know what's going on at Cato? Big management shake-up? Are they taking my suggestions?
The value equation is compelling. $174 million in cash and no debt is a good place to start. Solid profitability and cash flow don't hurt either. The dividend yield was briefly above 4% too.
Indeed the corporate governance issues I've discussed (at length) are the only real concern. I'll stop here. Readers of this blog have gotten a full dose of Cato.
But CTR shares are up 25+% since my purchases between August 28 and September 3. This kind of price action in just 3 weeks makes me wonder?!?
It'll tank 5 minutes after this is posted, but here goes nothing.