Published:
Knobias, Inc. Announces Cost-U-Less Inc. as the SPOT of the Week in Its Small-Cap ClipReport
Knobias, Inc. (OTC BB: KNBS) announced today
that it has selected Cost-U-Less Inc. (NASDAQ: CULS) as the SPOT of the
week in the Knobias Small-Cap "ClipReport."
Cost-U-Less Inc. operates 11 mid-sized warehouse club-style stores in the
U.S. Territories, the Hawaiian Islands, foreign island countries in the
Pacific and the Caribbean and Sonora, California. The Company builds its
business through delivering high-quality U.S. and local goods, progressive
merchandising practices, sophisticated distribution capabilities, and
superior customer service, primarily to island markets.
The Bulls say ...
From Growth to Value: In 2004, CULS reported double-digit same-store sales
growth, but has been unable to sustain this pace. For the first 10 months
of 2005, average monthly same-store sales growth has been around 5.6%, not
quite half of 2004. These maturing growth rates have caused growth
investors to dump the stock, but is there a big value play forming here?
Sure, double-digit growth is great, but CULS still sports respectable comps
relative to peers. Last 10 month's avg monthly same-store sales growth:
CULS=5.6%; WMT=3.5%; BJ=4.2%; COST=7.1%. This move from growth to value has
made CULS a serious laggard in price performance relative to other
retailers. In 6 months, CULS is down -16%, while the Retail Holdrs Index is
higher by +9%.
The Bears say ...
Takeover Talk...Talk is Cheap: Everything points to a possible takeover,
but at what price? CULS looks cheap relative to peers, but declining
growth, foreign risks and small operations may not command the premium
given to BJ, WMT and COST. Moreover, buyout talks may lead nowhere and
prospective buyers may sell their positions in light of a failed buyout.
The "ClipReport" is a daily newsletter distributed FREE to anyone
interested in proprietary news and insight concerning small-, micro- and
nano-cap stocks. Each week Knobias independently chooses one company to be
highlighted in the SPOT. To qualify for selection, each company must: 1)
trade on the Nasdaq National Market, Nasdaq SmallCap Market, Amex, OTCBB or
Pink Sheets; 2) have a Market cap of less than $250 million; 3) have annual
revenues greater than $1 million, 4) have a closing share price greater
than 5 cents, and 4) have average daily volume of at least 10,000 shares.
Knobias is never compensated for SPOT selections, and NO position will be
held in SPOT stocks by Knobias, its management or staff while the stock is
being highlighted.
To subscribe to the FREE Knobias Small-Cap "ClipReport," click:
http://www.knobias.com/clipreport
For advertising information concerning the Knobias Small-Cap "ClipReport,"
submit requests to: sales@knobias.com
For information concerning Knobias Issuer Services Program, submit requests
to: sales@knobias.com
About Knobias, Inc.
Knobias, Inc. provides complete financial information solutions for
institutional market participants, corporations and industry professionals.
By receiving early and accurate proprietary information, our clients are
allowed to monitor and trade more successfully. Actionable data is
delivered via high-quality applications consisting of proprietary products;
analytics; streaming information; financial data; fundamental research; and
third-party research. Whether you are interested in small cap or the
broader markets, we have the tools, information and knowledge you need. For
more information about Knobias, Inc. products, please visit www.knobias.com
FORWARD-LOOKING SAFE HARBOR STATEMENT
To the extent that this release discusses any expectations concerning
future plans, financial results or performance, such statements are
forward-looking within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities and Exchange Act of
1934, as amended, and are subject to substantial risks and uncertainties.
Actual results could differ materially from those anticipated in the
forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the
date hereof and reflect only management's belief and expectations based
upon presently available information. These statements, and other
forward-looking statements, are not guarantees of future performance and
involve risks and uncertainties. Knobias assumes no obligation to update
any of the forward-looking statements in this release.
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