Iconix Brand Group (ICON)

Stock of the Day
Iconix Brand Group
Wednesday’s Close: ICON – 20.81


The ideal entry for this stock is near $17.50 – $18.00 or preferably the 200-day moving average. Volume has been increasing as the stock has been trending higher over the past 18 months. I do expect a consolidation period before the next advance but that is just my opinion. Let the charts tell you what is happening. Many young stocks pause and consolidate in the low $20 range before moving on to make large advances. Not all stocks follow this pattern so the best advice is too monitor the daily and weekly charts and locate support and resistance levels which can help you determine the best entry and exit areas based on probable risk ratios

(From Yahoo) Iconix Brand Group, Inc., a brand management company, engages in owning, licensing, and marketing a portfolio of consumer brands, including Candie’s, Bongo, Badgley Mischka, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, and Ocean Pacific. The company licenses its brands through approximately 115 retail and wholesale licenses worldwide for use in connection with various product categories, including women’s, men’s, and children’s apparel, footwear, and accessories; home furnishings; and beauty and fragrance. The company was founded in 1978. It was formerly known as Candie’s, Inc. and changed its name to Iconix Brand Group, Inc. in 2005. Iconix Brand Group is headquartered in New York, New York.

Next Earnings: 3/7/2007
Sector: Consumer Discretionary
Industry: Footwear

Inside Ownership: 24.80%
Held by Inst.: 48.08%

Number of Institutions:
Money Market: 106
Mutual Fund: 123
Other: 8

Top Holder: BAMCO Inc.
2.5mil shares for 0.02% of Portfolio
Total Equity Value of Portfolio: $16.0 billion

Interesting Institutional Facts:
Value of Shares bought last reporting period: $239,381,225
Value of Shares sold last reporting period: $45,501,443

Key Fundamental Numbers:
Short Ratio: 4.84
Debt $M: 145.17
Operating Margin: 42.76
Net Income $M: 31.13
ROA (%): 9.79
ROE (%): 19.74
Free Cash Flow $M: 21.39
P/E (TTM): 28.44
P/E (Forward): 20.33
Price to Sales Ratio: 15.98
Price to Cash Flow: 49.60
Earnings per Share (TTM) (EPS): 0.74
Book Value per Share: 2.84
PEG Ratio: 1.13
Price to Book Ratio: 3.85
Debt/Equity: 0.76
Cash Flow/Share: 0.38

Yearly (2005): 0.46
Yearly (2004): -0.45
Yearly (2003): -0.17
Yearly (2002): -0.12

Q1: 0.18
Q2: 0.19
Q3: 0.18
Q4: —

Q1: 0.02
Q2: 0.08
Q3: 0.14
Q4: 0.19

Revenue (millions):
Yearly (2005): 30.16
Yearly (2004): 131.4
Yearly (2003): 156.8
Yearly (2002): 101.4

Q1: 13.27
Q2: 18.41
Q3: 22.11
Q4: —

Q1: 4.30
Q2: 4.29
Q3: 9.21
Q4: 12.36

Net Income:
2005: 15.9
2004: -11.3

2005: 12.2
2004: 2.79


The stock has been trending in a nice channel as Yaser Anwar points out in a comment on a previous post titled Stock Predictions for 2007 – Oh NO! ICON was highlighted as one of the stocks I was watching for possible purchase in 2007. It would be nice to hear Howard’s thoughts too as he is a strong believer in buying stocks making new highs or at least near new highs. That is my bread and butter strategy and it has not failed me yet (over the long term).
Disclosure: I do not own Shares in ICON as of 1/11/07

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