Express: From Meme Stock To Undervalued Gem
Express, Inc. (EXPR) was one of the OG meme stocks along with AMC, GME and KOSS last year as people were banking on a short squeeze. The stock ran from less than $1.00 to over $6.00 in the first half of 2021, with high correlation to GME and AMC's runs. Today it settled at $1.77, up 33% and has transformed from a meme stock with short squeeze potential into an undervalued gem. Why? Because of news of a deal between itself and WHP Global. WHP Global is the owner of Toys R Us. So it's a company with deep pockets and resources with experience with the challenges of running a retail chain in 2022. WHP will invest a total of $260 million - $25 million to buy 5.4 million EXPR shares at $4.60 and $235 million into a joint venture where WHP will own 60% and EXPR will own 40%. What makes this deal interesting is that WHP laid down $260 million for a company that has only a $121 million market cap. It could have spent less money to buy EXPR out and own 100% of the joint venture along wi...