Investing in Tweens Stocks, Really?

Are you having to shell out money for your tweens to buy PINK by Limited Brands (LTD) or crap from those damn Justice catalogs from Ascena Retail Group (ASNA).  There are billions to be made from these tween lines and that's good news for these stocks.

The who's who of girlie tween wear would be Hot Topic, Inc. (HOTT), Urban Outfitters Inc (URBN), Limited Brands Inc (LTD), and Ascena Retail Group Inc (ASNA).  Mastery wish we would have bought this whole group last week as Hot Topic shares just jumped 30%.  Hot Topic is being sold for $600 million to Sycamore Partners, the private equity firm that this summer bought Talbots for $391 million. 

The remaining three are spendy in terms of an aquisition but we believe they have great potential.  Read BusinessWeek's article Forget Training Bras. Girls Are Buying Lingerie for the downlow on why investing in these names is credible.

Here is how those stocks are trading:

URBN: $5.92B Market Cap
Urban Outfitters Inc's (URBN) is trading at $ 40.49 and its shares are now 9% below its 52-week high. URBN shares are now trading with a P/E Ratio of 30.6 and EPS of 1.33.

LTD: $12.9B Market Cap
Limited Brands Inc (LTD) shares have traded between $40.32 and $52.5 over the past 12 months.  LTD shares are now trading with a P/E Ratio of 19.4 and EPS of 2.33. Limited Brands  is trading at $44.83 and its shares are 10% from its 52-week low.

ASNA: $2.9B Market Cap
Ascena Retail Group Inc 's (ASNA) is trading at $18.92, in the middle of its 12 month range.  ASNA shares are now trading with a P/E Ratio of 17.8 and EPS of 0.99.