GARP Spinoff Update

Greater visibility ignites stock price (quick note)

A few things have occurred since my 9/5 article that are worth commenting on.

First, my friend Andrew Walker did a nice three part writeup on SN, part one of which can be found here. I was particularly impressed with his analysis of executive compensation as well as his thoughts on brand quality.

Second, the first sell side firm (Jefferies) initiated research coverage with a highly bullish first report and price target ($67/share, buy rating) which triggered the pop in the share price that started on Monday.

Third, the company presented the investment case on 9/12 at the Goldman Sachs Global Retailing Conference.

While most of the conference was a review of the company and it’s history, they also presented a few details that I think are worth highlighting: