Bon-Ton Stores, Inc. (BONT)

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Bon-Ton Stores, Inc. (BONT)

• Peter Ballen

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Quick Facts

• Retail Clothing, cosmetics, furniture, ect.
• 280 department stores in 23 states.
• Northeast, Midwest
• 4.6 million frequent credit card users.
• Competitors J.C. Penny, Macys, Dillards Retail
  Ventures, Kohls

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Stats

• Current Price 10.75
• 52 Week 0.76-11.22 (going up)
• Mkt Cap 199.900M
• Div/yield 0.05/1.86
• EPS -10.79 (par for the sector)
• Beta 2.24

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Socially Responsible

• 12-15M worth of donated clothing to Goodwill.
• 11/16-11/30 Offered 20 off coupon in exchange
  for donated clothes.
• 4.3M to fight breast cancer since 1998.
• Charge Against Breast Cancer, give portion of
  each sale to The Breast Cancer Research Foundation

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Recent News 2009 Outlook

• Jan 29 We will improve!
• Mar 11 Loss of 3.40 to 4.30
• May 21 Reaffirmed, below expectations.
• Aug 20 Update, Loss of 2.50 to 3.70
• Oct 26 Higher end of range, 2.50
• Nov 19 Announces 3rd Q results.
• Dec Holiday Season

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Earnings

• Consistently beat earning estimates.
• Macys announced strong earnings.

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October Sales

• Very strong (relatively speaking)
• October sales up 3.1 compared to last year.
• Q3 sales down 2.9, YTD down 6.7.
• Helped by sportswear, coats, accessories.
• Indicative of stronger than anticipated Q3/Final?

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1 Month
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3 Month
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6 Month
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Recommendation

• Buy Buy at current price, before earnings report
  is released.
• Short term stock, 3-9 weeks max.
• Limit Sell 13.00