BlueStone Capital Partners Announces Investment Opinion on Too, Inc.Business Editors NOTE TO EDITORS: The following is an investment opinion issued by BlueStone bluestone, common name for the blue, crystalline heptahydrate of cupric sulfate called chalcanthite, a minor ore of copper. It also refers to a fine-grained, light to dark colored blue-gray sandstone. Capital Partners NEW YORK--(BUSINESS WIRE)--Jan. 4, 2001 BlueStone Capital Upgrades Too, Inc. Rating to 2-1 from 3-2 Senior analyst Kathleen Heaney and analyst Olga Urgiles of BlueStone Capital are upgrading the investment rating on Too, Inc. (NYSE NYSE See: New York Stock Exchange :TOO)($16.38) to 2-1 from 3-2. Analyst's Summary We are upgrading our intermediate and long-term ratings on Too, Inc., one of the largest retailers to the "tween tween n. A child between middle childhood and adolesence, usually between 8 and 12 years old. [Blend of teen1 and between.] " market, to 2-1 from 3-2. Yesterday's 50 basis point interest rate cut and hints that more could follow, gives us more confidence in the outlook for the retail sector in the coming year. We now believe that there could be more upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar to our estimates versus our previous downward bias. Re-Cap Yesterday Too, Inc. announced that same-store sales for the fourth quarter are expected to decline 2%-3% marking the first quarterly decline for the company in several years. This is in line with our expectations and was the reason behind our downgrade following the release of third quarter results. The company also said that earnings per share in the quarter were likely to meet or exceed current First Call consensus estimates of $0.64. We are at $0.66 per share for the quarter. Outlook The Too, Inc. customer could be perceived as one of the most fickle consumers and apparel retailers catering to this group could become the victim of the whims and fickle nature of their preferences. Looking ahead though, we believe that Too, Inc. can continue to grow earnings in the 15%-20% range in the next three to five years, outpacing its peers. We continue to believe that Too, Inc. is one of the best-positioned specialty retail brand concepts, thus our more positive long-term recommendation. BlueStone Capital is a full service investment banking and brokerage firm focused on identifying investment opportunities in the emerging growth sector. BlueStone Capital assists clients in maximizing their growth by providing sophisticated investment strategies that are designed to achieve clients' strategic, operating and financial goals. Member NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). , SIPC (Simply Interactive PC) An earlier umbrella term from Microsoft and Intel for a PC that works like a home appliance. For example, it has a sealed case, uses external connectors for expansion and boots in just a couple of seconds. , and ISMA ISMA See: International Security Market Association . |
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