"It had a good quarter because of an acquisition, but it's a very seasonal business," says Adam Lowensteiner, managing director and founder of MicrocapReport.com, in Bergenfield, N.J.
The online newsletter recommended the stock as a Buy on Nov. 28.
"After Build-A-Bear (BBW) went public [in October], it began trading at a humongous multiple to Vermont Teddy Bear.
And while Build-A-Bear is in stores and Vermont is from warehouses, I felt given its exposure that Vermont might become an acquisition target or get near multiples of Build-A-Bear."
says Build-A-Bear's price-to-sales ratio is 2.5, compared with 0.4 for Vermont Teddy Bear, as of Monday.
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December 27, 2004
"Every time a natural occurrence like this happens, the stock goes up on the expectation Taylor will get more orders," says Adam Lowensteiner, managing director and founder of MicrocapReport.com, an investment newsletter based in Bergenfield, N.J. "People expect it to grow 200% to 300%, but that's not their scenario.
It's a good company with good products, but the business has been very lumpy.