This Day On The Street
Continue to site right-arrow
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

Apparel Stock Short-Squeeze Opportunities

Iconix Brand Group

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

I've long been a fan of small-cap clothing firm Iconix Brand Group (ICON - Get Report) because it ventured to do something that far too many clothing firms were scared to do: It stopped selling clothes. More accurately, it switched its business from capital-intensive apparel manufacturing to brand management -- focusing on designing, marketing and licensing an impressive stable of clothing brands instead of worrying about all of the moving parts of a manufacturing operation.

With names such as Candie's, Badgley Mischka, Mudd, Mossimo and Rocawear under its belt, Iconix's portfolio of 17 brands is one of the most recognizable in the country -- and it spans the gamut from discount sportswear to runway fashions. As a result, Iconix benefits from extremely deep margins and predictable, contractual revenue streams.

And because the company owns the names and fashions that fuel exclusive, established names such as Mossimo at Target (TGT - Get Report), the company arguably has a major advantage in licensing negotiations. The same can be said at other retailers such as Wal-Mart and Sears (SHLD).

In a time when investors' focus is placed on hard assets and real value, it's no surprise that the massive amount of intangible assets on Iconix's balance sheet has scared off some bulls and sent bears into short mode -- at present, the company has a short ratio of 12.1. But as long as ICON can keep its ever-expanding base of brands generating high-level returns, this stock will continue to be worth a second look.

Iconix shows up on a recent list of 8 Consumer Stocks With Upside.

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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!
TRLG $0.00 0.00%
GIL $60.23 -0.59%
ICON $35.29 0.00%
UA $78.63 -1.00%
TGT $80.44 -1.45%


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

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