Take My Wife, Please

 | Jul 19, 2012 | 4:30 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:












One source for investment ideas that investors underutilize is their spouse or significant other.

Consider Peter Lynch's multifold return on Hanes Company -- now Hanesbrands (HBI) -- back in the 1970s, which he researched and bought after his wife declared her love of L'eggs, the company's popular pantyhose line sold in supermarkets and drugstores across America and packaged in whimsical egg-shaped containers.

As for me, my wonderful wife gave me two ideas on a silver platter over the past two years that I was too blind (or too ignorant) to investigate further. She uses Bare Escentuals cosmetics and enjoys shopping for apparel at J.Crew, and both of these companies were bought out at hefty premiums.

My wife is a big fan of Panera Bread (PNRA) and has been going there for years, back when shares were in the $40s -- they now trade for $150.

When I was doing my initial due diligence on J.C. Penney (JCP) after activist Bill Ackman took control and named retailing genius Ron Johnson CEO, I repeatedly asked my wife what she thought of the company. She said that she prefers Target (TGT). At the time shares were trading for $32, and today they trade for $19.

What does she like now?

Aside from the perennial favorite Target, she's a big fan of The TJX Companies (TJX), which has been a winner throughout the recession. Shares also trade at a decent valuation as opposed to Panera.

Last week, she discovered a very nice piece of furniture at Tuesday Morning (TUES). When I asked her about the company, she said that it's a retailer worth following based on its ability to pique shoppers' curiosity with an interesting and ever-changing inventory of well-respected brand names. Tuesday Morning is a small-cap stock with no debt and a nice chunk of cash. Shares trade at 85% of book value and activist investment firm Becker Drapkin Management, which has had tremendous success with turning around retailers, was recently granted a board seat (with possibly more to come) at the company.

For future investment ideas, I plan to give serious attention to any company or stock with which my wife becomes enamored.

Columnist Conversations

View Chart »  View in New Window » Gold has met the first upside target off the last setup zon...
View Chart »  View in New Window »
View Chart »  View in New Window »



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.