Friday, September 18, 2009

What's Up Cato?

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.

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