Matthew Drapkin and Steven R. Becker’s Becker Drapkin Management has just disclosed a 4.8% stake in Tuesday Morning Corporation (NASDAQ:TUES).  This is a sharp decrease from the 6.7% stake Becker Drapkin reported owning at the end of August, and seeing that the filing was activist in nature, the reduction in ownership below 5% indicates that further activism is unlikely.

Disclosure: none

Alan Fournier, the founder and managing member of Pennant Capital Management, a long/short hedge fund, just revealed he has taken a new 7.3% stake in MRC Global Inc (NYSE:MRC). Shares of the PVF energy company are up 9.5% year-to-date.

Disclosure: none

Coliseum Capital is an activist hedge fund founded by Christopher Shackelton and Adam Gray. In an amendment just filed with the SEC, the two managers reported a 16.2% stake in Accuride Corporation (NYSE:ACW). The 7.6 million share now held by Coliseum is significantly larger than the 4.9 million shares disclosed in their last 13F filing at the end of the second quarter.

Disclosure: none

In an amended 13G filing just reported to the SEC, activist hedge fund Riley Investment Management disclosed a 5.2% stake in National Holdings Corporation (OTCBB:NHLD). This is a decrease from the 6.3% stake Riley reported last week.

Disclosure: none

Nelson Obus‘ hedge fund, Wynnefield Capital, disclosed buying 40,230 shares of MAM Software Group Inc. (NASDAQ:MAMS), raising its stake in the company to a total of some 3.54 million shares. The new shares have been acquired in two deals, with the price amounting to $4 apiece.

Disclosure: none

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Westfield Capital Management Discloses Adding to Stake in ArthroCare Corporation

Jeff Gates, Gates Capital Double Stake in Headwaters

Scout Capital Ups Stake in Coty

A newly amended filing with the SEC revealed Westfield Capital Management is increasing its position in ArthroCare Corporation (NASDAQ:ARTC) to almost 3.17 million shares, from 2.92 million held earlier. The new stake represents 11.16% of the company’s common stock.

Disclosure: none

Jeff Gates, Gates Capital Double Stake in Headwaters

Prem Watsa, Fairfax Officially Disclose Plans to Invest $1B More in BlackBerry

Ricky Sandler, Eminence Capital Go Activist On The Men's Wearhouse

Jeffrey Gates‘ Gates Capital Management reported doubling its stake in Headwaters Inc (NYSE:HW), after initiating the position in September. Gates now holds around 7.37 million shares of the company, up from 3.67 million owned earlier. The upgraded stake amasses 10.1% of Headwaters’ common stock.

Disclosure: none

When I was 14, my grandmother gave me 200 shares of a small insurance company called Statesman Group, which eventually became American International Group Inc (NYSE:AIG).

The certificates were buried somewhere in my father’s law office, but dividend checks appeared in my mailbox every three months. (I remember they were usually for about $50. That was big money for a teenager in the early 1980s.)

I always thought — and still do — that that was the neatest thing in the world: getting paid just to own stock.

Historically, many equity investors have felt the same way — especially after the drubbing of the dot-com bubble burst, the 2001-’02 bear market and the most recent bear market resulting from the financial crisis and Great Recession. Companies that have consistently paid and increased their dividends tend to perform well in times of market uncertainty. The iShares Select Dividend ETF (NYSEARCA:DVY) is proof positive of that sentiment.

From trough to peak, investors who felt brave enough to buy have done quite well. Conventional wisdom would say maybe it’s time to take money off of the table. While playing defense and taking some profits is never a bad thing, investors who have been hesitant to get in and feel they may have missed the boat should reconsider. Here’s why.

Mountains Of Cash
Recently, I received a copy of J.P. Morgan Asset Management’s quarterly Guide to the Markets. Compiled by the amazingly insightful David Kelly and his team, I’ve found this to be an incredibly resourceful research tool.

In the equities section, there’s an interesting study on the deployment of corporate cash among S&P 500 companies. American companies, as represented by the index, are currently holding nearly 30% of their assets in cash and cash equivalents. This is up from 20% at the onset of the financial crisis and nearly double the percentage held at the beginning of the 21st century. Eventually, this cash will go somewhere. Why not to shareholders?

The percentage of a company’s retained earnings paid out as dividends to shareholders is measured using the dividend payout ratio. Lower numbers typically mean a company is either hoarding cash or reinvesting in the business. A higher number means the company is paying out more cash than it probably should.

A good rule of thumb is to use a dividend payout ratio of 60% as a maximum. This still leaves a decent amount for the company to shovel back into the operation. According to the J.P. Morgan research, the average dividend payout ratio for S&P 500 companies is 30% — a 10-year low. Clearly, there’s room for expansion.

‘No’ To Low Interest Rates
Despite the market’s nervousness over the possibility of the Federal Reserve dialing back its quantitative easing program, expect interest rates to stay ridiculously low for quite some time.

The general fear is that once the Fed stops buying bonds through its QE program, interest rates will soar. That would be the equivalent of turning a battleship as though it were a speedboat, so it’s probably not going to happen. When tapering does come, it will be a painfully slow, gradual process. It took the Fed nearly six years to get us here. It could well take just as long to get us back — and in the meantime, an increase in the yield on a 10-year Treasury from 2.6% to 2.7% is nothing to get excited about.

Look for investors, especially baby boomers retiring by the thousands, to seek higher sources of income. Strong demand for dividend stocks will support prices.

Go With The Growers
Naturally, investing in dividend-paying stocks means focusing on the companies that have the ability to consistently increase their dividends. Not only should those companies be well managed, they should also have strong, scalable franchises that will insure the earnings required for dividend sustainability. Here are a handful of names that fit that profile.

The Coca-Cola Company (NYSE:KO) – While Coca-Cola’s dividend payout ratio is a bit on the high side at 52%, its gargantuan global brand and the world’s growing emerging markets will create a solid earnings stream for decades to come. The company (which I profiled recently) has raised its dividend every year for the past half century. Shares trade just under $40 and yield 2.8%.

Adam Weiss and James Crichton‘s hedge fund, Scout Capital, disclosed adding 30,000 shares to its passive stake in Coty Inc (NYSE:COTY). In this way, Scout now owns 3.53 million shares, which represent 4.3% of the company’s class A common stock.

Disclosure: none

Recommended Reading:

Prem Watsa, Fairfax Officially Disclose Plans to Invest $1B More in BlackBerry

Why Carl Icahn Is Dead Wrong About Apple

Brown Capital Management Now Owns 8.4% of Quidel Corporation

As it leaked a couple of days ago, Prem Watsa‘s fund Fairfax Financial Holdings, in a filing with the Securities and Exchange Commission, disclosed entering into an agreement with BlackBerry Ltd (NASDAQ:BBRY). Under the terms of the agreement, Fairfax and some other institutional investors will invest in the company via a $1 billion private placement of 6% unsecured debentures. The debentures can also be converted into Blackberry shares at a price of $10 apiece.

The full text of agreement can be read below:

Fairfax, Blackberry Agreement

Disclosure: none

Recommended Reading:

Why Carl Icahn Is Dead Wrong About Apple

Brown Capital Management Now Owns 8.4% of Quidel Corporation

Willow Creek Capital Discloses New 9.99% Stake in ERF Wireless

Apple Inc. (NASDAQ:AAPL) is one of the greatest high-tech success stories of all time. Helmed by the visionary, charismatic and sometimes controversial Steve Jobs until his recent untimely death, Apple has morphed into one of the world’s leading companies. Starting out strictly as a personal computer maker, Apple is best known for its iPod, iPhone and iPad. It is these products that catapulted Apple from a cult brand into the mainstream.

In less than five months, AAPL shares have soared from below $400 to about $520 currently. This 30% increase is impressive, but shares are still trading well below the all-time highs above $700 hit last year. The bullish fever surrounding Apple is so hot that some pundits are calling for a $1,000 share price in the not-so-distant future.

The company has made millionaires out of stock traders who rode it to profits from its relatively humble launch. In addition, traders with the foresight to buy shares on any price dips have also made out like modern-day bandits.

Unfortunately, Apple’s success has made trading its shares difficult for many. Its high price makes the stock prohibitive for many traders. One needs to be swinging a big stick to be able to commit $500,000 plus just to trade 1,000 shares. While options can be alternative tools to capture profits from Apple’s moves, there is another, simpler way to profit from Apple’s success.

And that is to purchase shares in companies that supply products and services to Apple. When these products or services are a critical part of the supply chain for Apple’s hottest new products, the company supplying them may ride Apple’s coattails to great success.

The key is to locate a supplier that is reasonably priced and has a multiyear contract with Apple. This helps ensure the longevity of the relationship. And the lower price enables investors with practically any account size to play Apple’s success.

GT Advanced Technologies Inc (NASDAQ:GTAT) is one such Apple supplier that has tremendous upside potential. The New Hampshire-based company boasts a market cap of $1.2 billion and trailing 12-month revenue of $438.5 million. It specializes in crystal growth equipment for the electronic, solar and LED industries worldwide.

Apple just inked a multiyear deal to purchase sapphire material from GTAT. This will likely be the impetus to lift the share price. Apple is giving GTAT a little less than $600 million to help it get its new sapphire furnace production facility up and running in Arizona. GTAT plans on employing over 700 people in this endeavor.

Apple uses sapphire material to create scratch-proof glass screens. Sapphire glass has long been used as the crystal on high-end wrist watches such as Rolexs and other luxury brands. It is favored due to its hard, scratch-proof nature and its crystal-clear clarity. GTAT beat competitor Corning Incorporated (NYSE:GLW)‘s Gorilla Glass product for the contract.

Ricky Sandler‘s Eminence Capital just revealed that it holds a 9.8% stake in The Men’s Wearhouse, Inc. (NYSE:MW). Sandler is a known activist, and shares are up over 8% on the news. Also, Eminence sent a letter to the company’s Board of Directors, expressing its disappointment with the board’s reply to the proposal from Jos. A. Bank Clothiers Inc (NASDAQ:JOSB), which offered to acquire The Men’s Warehouse for $48 per share.

“We agree with the Board that the proposed $48 share price undervalues MW both for its stand-alone prospects and for its fair share of the merger synergies. However, we know from historical M&A practice that acquirers rarely put forth their best price in their first offer,” the fund said.

The whole letter can be accessed through the link below:

Eminence Capital Letter to The Men’s Warehouse

Disclosure: none

Recommended Reading:

Why Carl Icahn Is Dead Wrong About Apple

Brown Capital Management Now Owns 8.4% of Quidel Corporation

Willow Creek Capital Discloses New 9.99% Stake in ERF Wireless

How about putting your money into a currency that:

-is not widely accepted

-has an uncertain legal future

-swings wildly in value

-is comparatively illiquid with respect to dollars

-is typically stored in one data file on your computer

It doesn’t sound enticing. But that same currency is up over 80% in value over the past month, and up over 2,300% over the past year:

Source: Bitcoin Charts

What’s happened recently to fuel such a rally? Besides seemingly new interest from Chinese bitcoin exchanges, there are a few other developments.

Senate inquiry
It’s impossible to tell how the bitcoin market will react to any news, but it appears that any step that could legitimize it fuels price run-ups. The latest comes from news that the Committee on Homeland Security and Government Affairs as well as the Banking Committee will hold hearings on digital currencies and their effects on illegal trade and taxation. Notice from such high-level institutions shows Bitcoin’s growing clout. But the government could decide to demonize digital currencies for their relation to illegal drug marketplaces, and forbid citizens from trading in the trending digital tender.

Silk Road shutdown
In October the FBI, DEA, and IRS took down the Silk Road, one such online marketplace that dealt in drugs, guns, and hitmen for hire. The government seized about 170,000 bitcoins related to the market, which at the time was worth $33 million and now is valued at $43 million. The shutdown of one of the most well-known black markets caused a slight downward blip in price. But the currency quickly regained the lost value. It’s possible that such a shutdown of the seedier aspects of the bitcoin market lends it more legitimacy. And as the story became popular, more were exposed to bitcoins’ existence. 

Corporate interest
Besides many start-ups looking to supply the bitcoin industry, eBay (NASDAQ:EBAY)  CEO John Donahoe recently reiterated past statements that it was “watching” Bitcoin. In the future, eBay’s PayPal division plans to allow retailers to store loyalty points in a user’s PayPal wallet-and adding digital currencies to the mix isn’t beyond reason. Additionally, the number of PayPal accounts, transactions, and payment volume have had double digit growth rates every quarter compared to the prior year going back to at least nine quarters. If eBay made moves to utilize bitcoins, it would open up the market to its 123 million total active registered accounts.

Even if it doesn’t incorporate bitcoins, it’s smart for eBay to keep an eye on them as it must continue to own the digital payment space, and bitcoins could be an outside disrupter with its zero to low processing fees for transactions.

Digital value
Even with these bits of news, the risks of bitcoin remain the same as they were when it was worth $10. If you don’t understand how to secure data files and you don’t regularly backup your data, chances are bitcoins aren’t for you — just as if you can’t understand how a business makes it money, you probably shouldn’t invest.

The article Jumping on the Bitcoin Rocket originally appeared on Fool.com.

Fool contributor Dan Newman owns shares of eBay. The Motley Fool recommends eBay. The Motley Fool owns shares of eBay. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Just weeks after being dealt defeat in the Dell proxy fight he started, activist Carl Icahn is making a comeback, and in a big way. On Aug. 13, Carl Icahn tweeted out that he now holds a large position in Apple (NASDAQ:AAPL), saying that he believes the stock to be extremely undervalued. In late October, Icahn shed some light on just how large his large position in Apple currently is, about 4.73 million shares, worth somewhere around $2.5 billion.

Icahn, who now owns 0.5% of Apple, has been much noisier than the average shareholder, and already has met with Apple CEO Tim Cook to discuss a $150 billion share-buyback program, which Icahn is advocating as the proper way Apple should utilize its $147 billion in cash. Yet just because this legendary investor says something doesn’t mean it’s right. In fact, he is dead wrong about Apple.

Icahn’s plan could send Apple shares to $1,250
While Apple has already launched a $60 billion buyback program it plans to enact over the next three years — a plan which the company marks as the largest ever and one which it will revisit each year — Icahn is unimpressed. He wrote in his letter to Cook that while it “may seem like a large buyback, it is simply not large enough given that Apple holds $147 billion of cash on its balance sheet.”

Icahn continued on in his note to propose a $525 per share tender offer, facilitated by Apple borrowing $150 billion at a 3% interest rate. This, Icahn says, would result in an immediate 33% boost to earnings. After three years and with the benefit of earnings growth, Icahn sees shares of Apple soaring to $1,250.

While the short-term benefits of this program are indisputable, whether or not if this plan is in the best interests of long-term shareholders has come into question. Icahn said in the letter that “commencing this buyback immediately would ultimately result in further stock appreciation of 140% for shareholders who choose not to sell into the proposed tender offer,” adding, “to invalidate any possible criticism that I would not stand by this thesis in terms of its long term benefit to shareholders, I hereby to agree to withhold my shares from the proposed $150 billion tender offer. There is nothing short term about my intentions here.” Unfortunately, I’m not so sure.

Apple needs to start “thinking differently” again
While a rising share price is undoubtedly something I would cheer as an investor in Apple, over the long run emptying the vaults to buy back stock is not something that is going to keep the company growing 5, 10, or even 20 years from now. Instead, Apple should return to its innovative roots, and start “thinking differently” as it once did.

Just look at how Google (NASDAQ:GOOG) is venturing into self-driving cars and Google Glass, two products which like the iPhone and iPad, were unimaginable before substantial investment by these companies. Or how Amazon (NASDAQ:AMZN) has poured millions into building the infrastructure required to support the rapid growth Amazon expects in its web services division. In 2012, this segment produced only $2.52 billion in revenue. In 2020, over $20 billion in revenue is expected.

A rising stock will come with growth, as the market rewards companies whose primary focus is investing in the future with hefty multiples. Amazon did not even make any money in the third quarter, while Google carries a P/E ratio near 30 compared to Apple’s 13. While the passing of Steve Jobs undoubtedly took some of Apple’s innovative magic away, there are countless great ideas and visionaries in the world, and Apple has the money and means to make these dreams a reality, and fuel the company’s future growth in the process.

Recently rumors have been swirling as to if Apple will release an “iTV” early next year, but even if it does, this product must only be the first in a series of new products to come. One of the advantages of having $147 billion in cash is that not all growth must be organic, and major acquisitions are a potential reality. As a long-term investor in Apple, I would much rather the company buy Facebook and Netflix and still have $7 billion left over than spending all of its $147 billion buying back its own stock.

The Foolish bottom line
While I am glad Carl Icahn is bringing some attention to Apple’s management of its cash, I strongly disagree with his storm-term minded share buyback program, and would rather have the company invest in the products of tomorrow like Google and Amazon. My respect for Carl Icahn is great, but at least on this one, he is dead wrong.

The article Why Carl Icahn Is Dead Wrong About Apple originally appeared on Fool.com.

Ryan Guenette owns shares of Apple. The Motley Fool recommends Amazon.com, Apple, and Google. The Motley Fool owns shares of Amazon.com, Apple, and Google. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Brown Capital Management, in a newly amended 13G with the SEC, has disclosed that it now owns 8.4% of Quidel Corporation (NASDAQ:QDEL). This is an increase from the 5.4% stake Brown reported in its last 13G, filed in April of this year.

Disclosure: none

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Willow Creek Capital Discloses New 9.99% Stake in ERF Wireless

Seamans Capital Management Boosts Quantum Fuel Systems Exposure

Mario Gabelli's Gamco Ups Stake in Mac-Gray

Willow Creek Capital, founded by Jon Hauser, Jon Hardy and Jerrel Armstrong in April 2008, just disclosed a new 9.99% stake in ERF Wireless, Inc. (OTCBB:ERFB). The nature of the 13G filing indicates that the position is passive in nature, so we expect that Willow Creek is here from a valuation or growth standpoint.

Disclosure: none

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Seamans Capital Management Boosts Quantum Fuel Systems Exposure

Mario Gabelli's Gamco Ups Stake in Mac-Gray

4 Reasons Why Leon Cooperman May Be Long Delia's

Seamans Capital Management has just disclosed an 8.3% stake in Quantum Fuel Systems Tech Worldwide Inc (NASDAQ:QTWW), in a newly amended 13G filing. Due to the nature of the 13G, the position is passive in nature, and is an increase from the 7.2% stake reported late last month. Shares of Quantum Fuel are up 22% over the past four weeks.

Disclosure: none

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Mario Gabelli's Gamco Ups Stake in Mac-Gray

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In a newly amended 13D filing with the SEC, Mario Gabelli‘s Gamco Investors reported an 8.24% stake in Mac-Gray Corporation (NYSE:TUC), which is set to merge with CSC Fenway. This position is larger than the 6.66% stake Gabelli reported late last month.

Disclosure: none

Recommended Reading:

Why Carl Icahn Is Dead Wrong About Apple

4 Reasons Why Leon Cooperman May Be Long Delia's

Baker Street Capital Discloses 13.3% Activist Stake in USA Truck

While the initial public offering of social media darling Twitter dominates the media spotlight today, the Dow Jones Industrial Average remains subdued, giving up some of its lovely gains from yesterday. Two of the big banks involved in the IPO, JPMorgan Chase and Goldman Sachs (NYSE:GS) , have seen their stock prices rise and fall so far today, despite the excitement surrounding the Twitter spectacle.

A slew of economic indicators were released earlier today, which, put together, seem to average out on the positive side. The Department of Labor released initial jobless claim information, presenting an adjusted figure of 336,000, against analysts’ expectations of 335,000 — and a drop from the prior week of 9,000.

Some decent news from the Bureau of Economic Analysis showed that the country’s Gross Domestic Product increased at an annual rate of 2.8% in the third quarter, a nice surprise given that economists were predicting a dip, down to 2% from the previous quarter’s 2.5%.

Unfortunately, Bloomberg’s Consumer Comfort Index took another hit, registering a 37.9, compared with the previous reading of 37.6. Consumers are apparently still unimpressed with the economic recovery — which doesn’t bode well for the holiday shopping season.

Twitter fanfare: Is Square next?
Despite some concerns about the sustainability of Twitter’s business model, the IPO is in full swing this morning, with its new asking price of $26 per share. Investors’ enthusiasm apparently knows no bounds, however, and traders noted orders coming in between $40 and $44 by midmorning. One hour later, the first trade occurred, at $45.10 — and, at one hour before noon, the stock price is registering $47.12.

Though in the red at the moment, JPMorgan Chase and (NYSE:JPM) Goldman Sachs should see a lift from this party atmosphere, not to mention the nearly $60 million worth of fees that they, and other underwriters, will split.

With this deal under their belts, it’s probable that both big banks will be participating in even more transactions in the future. For Goldman, the Twitter deal represents a swipe at competitor Morgan Stanley, which is more involved in deals involving tech firms. Indeed, it looks like Goldman’s move may have paid off already. The Wall Street Journal notes that payments company Square has spoken with big banks, including Goldman and Morgan Stanley, regarding a possible IPO of its own next year.

The article Dow Sinks as Twitter IPO Rocks the NYSE originally appeared on Fool.com.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. The Motley Fool owns shares of JPMorgan Chase.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Leon Cooperman and his hedge fund, Omega Advisors, manage an equity portfolio worth more than $6 billion. In a new 13G filing reported earlier this month, Cooperman revealed that he owns 6.9% of dELiA*s, Inc. (NASDAQ:DLIA), the young women's apparel company. Due to the fact that it's important to track hedge fund sentiment (discover how we returned 47.6% in our first year), we'll attempt to answer the question everybody wants to know: why did Cooperman disclose such a massive stake in Delia's?

1) Low market capitalization

In our view, it all starts with the market cap; Delia's currently trades at a minute market capitalization just over $73 million. According to multiple empirical studies, small-cap stocks offer hedge funds the best opportunity to outperform the market because: (1) they're tracked by fewer analysts, (2) it's easier to obtain a so-called 'research advantage' in these stocks, because there's less public information available and (3) they often appreciate more rapidly than their large-cap peers once the market learns of a hedge fund's involvement.

In the case of Delia's, Cooperman's disclosure led to a 12.8% gain on Tuesday, November 5th, when the filing was reported, and a 5.3% gain the following day. In other words, shares of Delia's were up 13% year-to-date through November 4th. After the markets closed on November 6th, they were up a whopping 35% YTD.

Of course, it's important to remember that the date of Cooperman's filing wasn't actually when he took the position in Delia's. According to SEC records, the actual stake was bought on October 24th. Essentially, this means that due to the fact that Leon Cooperman is, well, Leon Cooperman, and his name alone carries so much weight in the investing world, he's been able to book a gain of more than 30% on his position in just ten trading days. The sheer momentum his disclosure created generated most of this appreciation.

2) The Alloy sale

So there's that, and there's also this: Delia's sold its Alloy subsidiary to HRSH Acquisitions earlier this year for $3.7 million in cash and $3.1 million in debt. In a press release, the company's old CEO (we'll get to that in a moment), Walter Killough, said the transaction "will enable [Delia's] to focus [its] efforts exclusively on its dELiA*s brand," adding that it will work to improve its existing cost structure as well.

3) The presence of a "hedgie" friend

As it currently stands, Delia's focus is on girls and young women between the ages of 13 to 19 "with a more wholesome image" as fellow hedge fund manager Whitney Tilson likes to say. Tilson, who was the largest shareholder in Delia's of the funds we track at the end of the second quarter, told the Deal earlier this year that the stock has been a "classic value trap" in the past, adding that the company hasn't had "the right products" to fall in line with its sensible image.

Tilson believes that even though Delia's target market is more conventional than girls that shop at risqué competitors like Wet Seal, the company sells many of the same clothes that are sold at peers' stores. This idea ties into our next point.

4) A new CEO

In May, Delia's brought in Tracy Gardner to serve as its new CEO, replacing Walter Killough. Before joining Delia's, Gardner served as a board member at Women in Need, Inc. and Bonobos, a Creative Advisor at Gap, the Chief Strategy Officer at StyleOwner, and she was President of the J. Crew brand at J. Crew Group.

Most bullish analysts point to the latter experience in particular, when she oversaw J. Crew's flagship brand during a period of sustained success between 2004 and 2010. At Delia's, it's likely that investors like Cooperman and Tilson are expecting her to give that same focus to the company's main brand.

Final thoughts

In short, it's evident that Leon Cooperman is probably long Delia's for a few different reasons. The stock's small market cap gave him the ability to generate a short-term gain upon the SEC disclosure, and over the longer run, Delia's new CEO is expected to differentiate itself from competitors while taking advantage of the newly found freedom provided by the Alloy sale.

At a mere 0.25 times sales and 1.5 times book, there's no denying shares are cheap at the moment, even after the recent appreciation. If Delia's can hit or exceed Wall Street's earnings forecast over the next five years, in which it expects annual EPS growth of 14%, there's potential for more gains.

Disclosure: none

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