A The Wet Seal, Inc. (WTSL) Board Member Invested $200,000 In The Stock

We can also compare The Wet Seal, Inc. (NASDAQ:WTSL) to Tilly’s Inc (NYSE:TLYS) and to Ann Inc (NYSE:ANN). Each of these two companies grew their revenue at moderate to high rates in their most recent quarter compared to the same period in the previous fiscal year. In the case of Tilly’s, however, net income came in 30% lower. With trailing and forward P/Es of 15 and 14, respectively, analysts are apparently not expecting much improvement in the company’s bottom line and given the recent financial performance we would avoid it. Ann’s earnings growth during the same quarter was respectable, and it actually trades at a small discount to Tilly’s on a trailing earnings basis. With little growth needed in order to make it a value stock, we’d be interested in learning more about the company.

This doesn’t look like a wise insider purchase to imitate. With The Wet Seal, Inc. (NASDAQ:WTSL)’s comp sales down, and the business actually seeing negative operating profits in the last fiscal year, it seems quite speculative to us to buy the shares on the hopes of a recovery. If an investor is interested in the industry than Ann or Jones Group look like they are more worthy of moving on to the next step of a research process.

Disclosure: I own no shares of any stocks mentioned in this article.