Headline: CG: Is Michael’s a Value Stock or a Value Trap?
Industry Focus
The Motley Fool
4.6 • 854 Ratings
🗓️ 1 October 2019
⏱️ 38 minutes
🧾️ Download transcript
Summary
Michael’s is the largest craft retailer in North America, but is it a good stock? With shares down more than 40% since most recent its IPO in 2014, some may quickly dismiss the company. However, on closer inspection the company appears like it could have some value left in it. Motley Fool Contributor Asit Sharma joins the show to break down the company, and we give our thoughts on whether Michael’s is a value play or a value trap.
Stocks Mentioned: MIK
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Transcript
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| 0:00.0 | Welcome to Industry Focus, the podcast that dives into a different sector of the stock market every day. |
| 0:07.0 | Today is Tuesday, October 1st, and we're discussing Michaels. |
| 0:10.0 | I'm your host Nick Saipoll, and today I'm joining by Molly Fool contributor |
| 0:12.8 | Osset Sharma via Skype. How's it going Osset? Pretty good. How are you doing |
| 0:16.7 | Nick? I'm doing all right. It's good to have you back in the studio. We're talking |
| 0:20.8 | about Michael's today. Folks aren't familiar with that company, |
| 0:23.6 | one of the largest crafts and specialty retailers in the country. |
| 0:26.8 | Osset, do you do any crafting in your free time? |
| 0:29.6 | So I do crafting of the nature when something breaks. |
| 0:35.6 | I become a crafter for a day. |
| 0:37.2 | So if I'm moving a picture frame at home |
| 0:39.6 | and drop it, I'm a crafter for that day |
| 0:42.1 | because I'm gonna find my way to a Joanne's |
| 0:44.3 | fabric or Michaels or similar store and look for a frame. How about you Nick? |
| 0:48.5 | Yeah, I'm about in the same boat much more of a you know running to Home Depot to do that |
| 0:53.7 | that sort of crafting my girlfriend however does do that pretty regular has her |
| 0:57.6 | cricket machine has her at sea store happy go lacy gifts promo if anybody |
| 1:02.1 | wants to get uh some crafts on that. |
| 1:04.0 | But we're going to talk about Michael's today, and I think the context we're going to talk about them |
| 1:08.0 | is this is one of those companies that if you look at the numbers, it really looks like it could be a value stock. |
| 1:13.8 | However, we're going to walk through some concerns that could make it a value trap. |
| 1:18.0 | Before we dive into that, let's just give some brief history of the company and kind of where |
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