We're posting up notes from the 2013 Value Investing Congress in New York. Next up is Clifton Robbins of Blue Harbour Group. He presented "Think Like An Owner - Finding Companies Poised To Unlock Value" and pitched Chico's FAS (CHS).
Clifton Robbins' Value Investing Congress Presentation
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KKR guy. Says leverage
wasn't the key to PE, it was the good management.
Bullish on Chico's (CHS)
$2.3B EV. 5.8x EBITDA of $400m they filed a 13d, own 6% of stock.
1427 stores, they think
they could have 2200 stores.
4 brands. Chico’s is 720
stores. White House is 465 stores. Soma 235 stores. Boston proper only 2
stores.
Soma lingerie business for
older women, run by former Victoria Secret people.
"Growth stock trading
as a value stock"
Claims Chico’s is gaining
share.
Missy's space is loyal
customers.
New CEO with strong retail
experience.
Debt free. Could do a buy
back with cash over time.
Be sure to check out the other presentations from the New York VIC here.
