Finally, a bounce... and Wet Seal

Market finally put in a big up day today... I needed it. It's been a painful couple weeks. I'm still sitting far below my peak, but I don't mind it so much if my portfolio is gyrating along with the market. Okay... onto Wet Seal, is it a steal?

A fair number of you know that I recently picked up a large (very large by my standards) position in Wet Seal (WTSLA). I had a much smaller trading position, which I added to heavily. I'm currently underwater by a fair bit... my cost basis sits just below $3. I don't understand how the shares can be trading below $3, let alone in the 2.30's. Unfortunately, I can't add any more, as I am tapped out, and I still want to get more Mattel (MAT) at some point. But, property taxes (ah, the joy of home ownership) have another thing in mind for my money.

Anyway, the company sits on roughly $1 in cash and bonds, and it is not in any real danger of bankruptcy at this point... not in my view anyway. It sure does seem to be trading as if it is going to crash and burn. The company also recently brought back Edmond Thomas as the CEO. He was the President and COO of Wet Seal back in the 1990's. Maybe he is able to bring about change. Even without him, I think the price is more than right on WTSLA shares.

I know this isn't the best time for retail, but I will stick with my guns and keep the money where my mouth is. I suppose there's a chance that the company could get scooped up at these prices, which given my position, wouldn't be all that unwelcome. Anyway, just wanted to let that out. I guess we'll see if my move was astute or foolish some time next year.

I'm rambling now... I better stop. But, before I end this, I guess I should also mention that I've been a bit negligent in reporting on one of my trading positions. I sold Compucredit (CCRT) in the low 20's for a sizeable loss. Looking at the shares now, I suppose I did the right thing to get the hell out of Dodge.