Pier 1 Imports (PIR) NYSE

Pier 1 Imports (PIR) NYSE Purchased on 8/24/2004 at $17.75

OK, this was not my idea but I like nonetheless. I came across this company after reading about two investors who have been loading up on the company. Warren E. Buffett and Scott Black have loaded up on this stock. After looking at PIR and comparing the company to its peers, I can see why the value is so compelling.


---------------------Market Cap------ P/E------------- ROE %----- Div. Yield %----- Debt to Equity------ Price to Book
Retail (Specialty) ------212.50B-------- 41.609---- 14.703------- 1.196-------------- 0.514--------------- 5.782

Pier 1 Imports, Inc. ------1.54B--------- 14.551---- 16.777------- 2.266------------- 0.028---------------- 2.3

Analysts have a 2005 EPS estimate between $1.18 and $1.42 with an avg. of $1.33. A simple calculation puts PIR at about $50 a share based on the industry avg. I know that sounds simple but is a valid metric. True, PIR has to beef up there top line growth rate but they are certainly making an effort.

"Despite record sales of nearly $1.9 billion, the specialty retailer saw its per-share earnings slip 5% in the fiscal year that ended in February. As a result, Pier 1 Chairman and CEO Marvin Girouard says, "we will be evaluating all aspects of the company" -- from its merchandising practices to its advertising and marketing programs. " from the Dallas Business Journal

There is definitely value here. The question is whether management can right the ship and grow the earnings multiple. Stay tuned...