3. Casual Male (CMRG)Recent price: $3.96
This menswear retailer, catering to the "big and tall" crowd, is a perennial member of my top low-priced stocks list. Management has done a great job of cutting costs and boosting margins, leading to a nice profit rebound. This comes at a time when consumer demand remains lousy, so any eventual rebound on consumer spending could really ignite this business model.The numbers tell the story. Sales fell from $464 million in fiscal (January) 2008 to $394 million in fiscal 2011. Yet EPS rose from $0.09 to $0.32 during that time, thanks to tight cost controls. Results released in August portend even better days ahead. Sales rose 4% in the second quarter to $101 million compared with the same period in 2010, fueling a 17% jump in net income. EPS of $0.14 was the best quarterly showing in more than three years. Look for third-quarter results on Nov. 17 for signs that this turnaround story has real legs. I see shares trading up to $6.
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