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!
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