Maidenform Brands Inc. (MFB)

Stock of the Day
Maidenform Brands
Friday’s Intra-day Price: MFB – $20.77

Next Earnings Date: Wednesday May 9, 2007
Sector: Consumer Discretionary
Industry: Apparel, Accessories & Luxury Goods
52-wk Range: $24.49 – $11.11

So what do we have? The technical aspects of this company look excellent with the ideal entry right now at the 200-d moving average. The stock has held the line as support two times over the past several months and looks to be a solid long term young stock. The strongest growth stocks are usually within 3-5 years of their IPO and MFB fits this criterion by debuting less than two years ago.

However, earnings are due to be announced next week and based upon Under Armour’s (AU) recent disappointment, I would be cautious. As of this writing, I have not added shares and do not own the stock personally. I will setup my risk-to-reward ratios this weekend and make the decision heading into Monday morning’s opening. I want to own the stock and now is the ideal point to accumulate shares but earnings scare me.

I don’t need to get caught in a severe gap-down that completely screws my risk factor and blows past my stop. If UA reported better expectations, I would be all over these shares right now. Other than that, the stock looks good heading into the future.

Institutional Analysis:
Held by Institutions: 70.59%
Money Market: 107
Mutual Fund: 161
Other: 8
New Positions: 62
Positions Sold: 21

Shares Held Current Period: 26.7mm
Shares Held Previous Period: 21.2mm

Shares Bought: 10.0mm
Shares Sold: 4.5mm
Value of Shares bought: $206.2mm
Value of Shares Held: $93.7mm

Top Five Institutional Holders; Shares Held
Credit Suisse; 2,643,318
Barclays Global Investors UK Holdings Ltd; 1,553,596
Putnam Investment Management, LLC; 1,184,480
Morgan Stanley; 1,150,956
Wells Fargo & Company; 1,099,114

Key Fundamental Numbers:
Market Cap.: $477.8mm
Outstanding Shares: 22.98mm
Short Ratio: 2.21
Operating Margin: 6.66
EPS: 1.15
ROA (%): 10.73
ROE (%): 41.88
P/E (TTM): 17.38
P/E (Forward): 14.84
Price to Sales Ratio: 1.10
Book Value per Share: 3.28
PEG Ratio: 0.99
Price to Book Ratio: 6.10
Debt/Equity: 1.47
Cash Flow/Share: 1.43

Next Quarter 0.27
Next Year 1.11

Earnings:
Yearly (2006): 1.15
Yearly (2005): (0.39)
Yearly (2004): 0.30

Revenue (millions):
Yearly (2006): 416.8
Yearly (2005): 382.2
Yearly (2004): 337.0

Company Profile:
Maidenform Brands, Inc. and its subsidiaries design, source, and market a range of intimate apparel products in the United States and Canada. Its products include bras, panties, and shapewear. The company offers its products under the Maidenform, Flexees, Lilyette, Sweet Nothings, Rendezvous, Subtract, Bodymates, and Self Expressions brand names. Maidenform Brands sells its products through department stores; national chain stores; mass merchants, including warehouse clubs; and specialty retailers, licensing income, and off-price retailers, as well as through company-operated outlet stores and Web sites. As of December 31, 2006, it operated 76 outlet stores. The company is headquartered in Bayonne, New Jersey.

Related Stock: UA, Under Armour (currently getting hit hard near the 200-d moving average).

Bottom Line: The stock is a buy right now between $19 and $21 but earnings will be a “hold-your-breath” time come next week. I’ll let you know if I jump in on Monday!