This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

10 Fad Stocks That Bounced Back in 2010

Stocks in this article: CROX SIRI LULU KKD HLYS FOSL JMBA BBW JSDA DECK

Build-A-Bear Workshop (BBW)

Company Profile: Build-A-Bear Workshop is a retailer of plush animals and related products, allowing customers to create their own plush bears.

Current Share Price: $7.44 (Jan. 6)

2010 Share Price Gain: 58%

Comeback Story: Build-A-Bear went public in 2004 and aggressively grew the number of stores globally. However, the recession took its toll on the retailer, and same-store sales cratered. The stock fell from $30 in June 2007 to below $4 by the end of 2008.

One of Build-A-Bear's biggest catalysts has been reported interest from private-equity groups. Bloomberg reported in December that Build-A-Bear is seeking a buyer and has approached private-equity firms, citing people with knowledge of the matter.

Susquehanna International Group analyst Thomas Filandro wrote in a recent research report that he believes a deal makes sense for Build-A-Bear. He also notes several positive attributes of the company, including "high cash flow generation, healthy balance sheet, reasonable inside ownership, unique brand concept offering an emotionally connective product and shopping experience, and brand presence both domestically and internationally provide a solid platform for future growth."

Filandro has a "positive" rating on the stock and a 12-month price target of $10, although he adds that the Build-A-Bear concept is "a faddish business, with limited barriers to entry. Stores are highly reliant on mall traffic to drive transactions and comp growth."






Fossil (FOSL)

Company Profile: Fossil designs and sells consumer fashion accessories, including popular lines of watches, belts and handbags.

Current Share Price: $72 (Jan. 6)

2010 Share Price Gain: 108%

Comeback Story: Fossil shares could be bought in 1993 shortly after the company's IPO for roughly $2 on a split-adjusted basis. The stock rallied to $30 in 2004, but the company was hurt by soft sales and margins heading into 2006. At the time, Fossil's CFO said the company would be forced to hold itself to "more modest sales growth expectations and focus on reducing our expenses accordingly" until it could generate a catalyst to reinvigorate watch sales. By early 2009, shares of Fossil could be bought for less than $12.

"This was very much a fad for a while with the watch business," says Hodges. "They restructured and moved into the retail store business. Fossil, of course, has continued with the watch business but I wouldn't consider it a fad now. It's a staple now."

Hodges offers the example where Fossil recreated the diamond-crusted white watch Sandra Bullock wore in the popular movie The Blind Side. "They do a lot of that stuff where they hit areas that are popular. Fossil has been the exception in that they've transformed the business and they're fantastic at what they do. They're great marketers."

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs