Birks Group International [NYSE:BGI] – “Diamonds are Forever…Canadian” – Stock Valuation Analysis

BGI: Birks Group International

Birks Group International [NYSE:BGI]

“Diamonds are Forever… Canadian”

Just wanted to say thank you for sticking to J’s Journal! Our Canadian Jewelry company, Birks Group International, has been on a great run lately. [Today marks the first day BGI has broken and stayed above the $2 level since 1st position]. And while I would not say that the value is really at $31 million right now. It is trading that way due to creditors granting BGI new financing options.

This money will be utilized to make upgrades to certain Birks Group International U.S. stores and turn them into more ‘flagship’ retail outlets. [which im not 100% on board with them doing]. However I know its for the best in terms of their long term brand development in the U.S. This new credit line shows the public market that creditors see long term sustainability and ‘safety’ in BGI. Translating to the market that the company is on the right step and is an acceptable investment.

The real book value of Birks Group International is in between 23 to 25m [$1.55 to $1.68 per share], so the price is a bit overvalued. However I am not recommending a sell at this current time. In fact this may be the general momentum we are looking for to push BGI to the mid 2’s to low 3’s. However I would prefer if it stays relatively stagnant until January 2014 when it reports 2nd half of year earnings [BGI is a 2x/year earnings announcement (unlucky us!)].

Also I want to mention that one of our members will be making an onsite visit to a BGI store in Hallifax in early October. We look forward to their personal report!

Break

Disclosures

Seal of Approval

SM Call Signs

References_Logo

Important NYSE:BGI Resource Pages on:

Yahoo Finance | Google Finance | Morningstar

BGI Main Page | BGI Investor Relations

SEC Filings

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Copyright © 2013 Fat Pitch Investments. All Rights reserved. This material is for your information only and is not a solicitation, or an offer, to buy or sell securities mentioned in articles past, present or future. Fat Pitch Investments is a firm involved with equity research and valuations. The information contained herein has been obtained from sources that we believe are reliable but in no way is guaranteed by us. Furthermore, this report contains forward looking statements and projections that are based on certain assumptions and expectations that are generated by our proprietary research process. Accordingly, actual results may differ considerably from those reflected in this report due to such factors as those which are listed in the Company’s SEC filings. Any non-factual information in the report is our opinion and is subject to change without notice.

NYSE:BGI – NYSE:BGI – NYSE:BGI – NYSE:BGI – NYSE:BGI – NYSE:BGI

2 Responses

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    • Fat Pitch says:

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