River Oaks Capital’s Views on its Investment in Bebe stores (BEBE)

River Oaks Capital, an investment management company, released its second-quarter investor letter.  A copy of the letter can be downloaded here. Year to date, the fund returned 5.1% compared to the Russell 2000 TR’s 1.7% return and the Russell Microcap TR’s -0.8% return. River Oaks Capital concentrates on investing with a business owner, and long-term mindset in a select number of underfollowed publicly traded micro-caps and small caps. In addition, please check the fund’s top five holdings to know its best picks in 2024.

River Oaks Capital highlighted stocks like Bebe stores, inc. (OTC:BEBE) in the second quarter 2024 investor letter. Bebe stores, inc. (OTC:BEBE) was engaged in the design, development, and production of women’s apparel and accessories previously. The one-month return of Bebe stores, inc. (OTC:BEBE) was -15.00%, and its shares lost 21.84% of their value over the last 52 weeks. On September 4, 2024, Bebe stores, inc. (OTC:BEBE) stock closed at $2.04 per share with a market capitalization of $26.263 million.

River Oaks Capital stated the following regarding Bebe stores, inc. (OTC:BEBE) in its Q2 2024 investor letter:

“Bebe stores, inc. (OTC:BEBE) is our eleventh largest position. The company has a market cap of $32m and owns 50% of the bebe’s apparel brand, 28.5% of the Brookstone electronic brand and 64 Buddy’s rent to own furniture stores. If you go back to the days when people would spend their weekends walking around shopping malls, perhaps you remember seeing bebe’s clothing stores.

The bebe’s brand was started by Manny Mashouf in 1976 and became a well-known women’s apparel brand by the early 2000s – when they had over 300 stores in malls across the United States.

With the rapid decline of the popularity of malls over the past decade, bebe’s stores started to quickly struggle – having to close down numerous stores every year…” (Click here to read full text)

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Bebe stores, inc. (OTC:BEBE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of Bebe stores, inc. (OTC:BEBE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.