The Mall Detective From Thomas Weisel

You'd no sooner disappoint Faye Landes by fulfilling an online shopping order incorrectly than disappoint a New York Times restaurant critic by serving mushy spaghetti. That's because the influential retail analyst at Thomas Weisel Partners begins her research on the front lines -- as a consumer. If she doesn't like your goods or services, she's going to pan your stock.

"Retail stocks are the most famous Peter Lynch stocks," she says, referring to the money manager who tirelessly preaches that investors should know what they own. "You do the research by walking around the mall," Landes says.

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Her virtual mall experience with Amazon.com (AMZN) helped that company score high marks this busy holiday season. Not only did the e-tail giant have what Landes wanted in stock, employees also executed the sale and delivery in a timely manner. "I ordered electronics and they said they'd be there in five days, but they arrived in two," she says.

Execution is key, in Landes' view. "The difference between Wal-Mart's (WMT) and Kmart's (KM) execution is reflected in the financial results," she says.

In fact, Landes' shopping expeditions provide many telling clues. Salesclerks are a resource when analyzing vendors like Tommy Hilfiger (TOM), which depend largely on retailers to sell their clothes. "I like to find out what's selling," she says. "We check markdowns vs. everyone else's."

Clerks also help identify trends by revealing which vendors are being shoved aside and which ones are growing in popularity and gaining shelf space.

Naturally, location tells a lot about who's healthy. "See who is in the front of the store, who has eye level," she says. Prime locations are the sign of a healthy vendor. That's one reason Landes likes Nike (NKE). "There are little vendors that get a wedge in, but at the end of the day, it's Nike that retailers are beholden to," she says.

Then of course there's good presentation. "The success of Tommy Hilfiger and Ralph Lauren (RL) has a lot to do with their tremendous attention to detail," she says. "Their merchandise doesn't look like it was thrown on the shelves."

In a sector unkind to bottom fishers, this gumshoeing is critical, she says. "In this segment, improvement occurs at the retailer level," Landes says. "And you don't buy things that are falling apart."

For more on Faye Landes' stockpicking strategies and to hear which stocks are her favorites right now, check out "TheStreet.com" on Fox News Channel this weekend -- Saturday at 10 a.m. and 6 p.m. and Sunday at 10 a.m. EST. Landes will join Jim Cramer and Herb Greenberg to talk about stocks and trends in 2000.

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