KIRK - Kirkland's Inc.: Take Profits For Black Friday

• Kirkland's has had a huge run-up over the past year, but the rally looks to be getting ahead of its fundamentals which have seriously declined over the past decade.
• In a cash flow analysis of the company based on the most recent five years, Kirkland's looks only able to generate a 2.9% free cash flow yield.
• Under a best-case scenario of the company returning to its profitable past, the valuation still looks expensive with free cash flow yields of only 5.7%.
• A lot of things still have to go right for this retailer to return to its profitable past. It won't be as quick and easy as the run-up in its share price suggests.

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