ORLANDO, Fla., April 11, 2007 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, Inc., announced today that it has initiated research on Tandy Leather Factory, Inc. (AMEX:TLF).
Joe Blankenship, MBA, CFA Level I Candidate, RedChip Research Analyst, wrote in the report:
"We are initiating coverage on Tandy Leather Factory, Inc. (AMEX:TLF) with a BUY rating and a twelve month price target of $11.60. The Company has embarked on a relatively conservative expansion of its retail stores, which provides a higher gross margin and improving operating income for the Company.
"Expansion of the Company's retail stores requires minimal capital investment; the primary investment is inventory to keep the stores stocked. Generally, the Company's inventory does not follow trends or seasonal fashions, so obsolescence is not a big factor.
"The Company's expansion can be funded out of cash generated by operations, and a continued cash accumulation might suggest a stock buy-back, which can positively impact earnings per share on remaining outstanding shares.
"We recommend TLF as a conservative investment in a specialty retailing environment, free from the volatile swings of fashion, yet always fashionable in the form of accessories made by its customers."
To receive an abbreviated sample of the RedChip Independent initiation research for TLF, please visit: http://www.redchip.com/independent/subscriber.asp?page=requestTLF_Initial.
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RedChip Independent Research Disclosure
The analysts contributing to this TLF RedChip report do not hold any shares of TLF. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the TLF RedChip report. Additional information on the securities mentioned in this report is available upon request. This TLF RedChip report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the TLF RedChip report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. TLF is not a client of RedChip Companies, Inc., or any of its affiliates.