Michaels: Value Play or Value Trap?
If you judged craft-goods seller The Michaels Companies (NASDAQ: MIK) based on its stock-market interest, you might not guess the company has some pretty loyal customers and high cash flow. The private-equity ownership and serious debt issues, however, might be less surprising.
Every company has its risks. Where does Michaels fall on the value continuum?
In this week's episode of Industry Focus: Consumer Goods, Fool analyst Nick Sciple and contributor Asit Sharma dive deep into the business of Michaels, and why investors might see it as both a value play and a value trap. Learn more about the private-equity involvement, the debt, the buybacks, the strategic initiatives, the threats from e-commerce, and much more.
Source Fool.com
