Stock Purchase: Zales

Every time I purchase a stock, I make myself write down why I thought it would be a good idea to make the purchase.

* Disclaimer: This article is in no way a solicitation to buy, sell, or trade for the stock. It is just my analysis of my thought process when I purchased the stock. *

Stock Name: Zales
Stock Ticker: ZLC
Purchase Date: (Initial) February 11, 2013
Purchase Amount: 45 shares @ $4.83

Mindset during initial purchase:

I purchased Zales stock a couple of days ahead of it's February earnings report. I also purchased the Zales stock a couple of days before their big holiday; Valentine's Day.

CNN Money forecasted Zales stock on February 8, 2013 as:

Low - $6.00
Medium - $7.00
High - $10.00

Some of the highlights that made the Zales stock interesting were the following:

- Zales had nine consecutive quarters of same store growth
- Zales is currently re-developing its website to allow for increased web based sales.
- Zales lowered its borrowing interest rates from 8% to 4%


Lessons Learned from Purchasing This Stock

Zales (at the time of this post) is currently trading around $4.10-$4.15. It's one of those stocks that I'm constantly waiting for it to break out, but it never really moves that much. Four analysts labeled Zales' stock as "outperform" and one analyst marked it as a "hold".

Just for my own edumication, stocks labeled "outperform", according to investopedia, means that analysts expect the stock to do slightly better than the market return.