DBI - Vera Bradley's Turnaround Is Definitely Worth The Risk

• Vera Bradley has suffered declining sales for six consecutive years.
• The acquisition of Pura Vida represents a paradigm shift and sales are showing signs of stabilization.
• The company has a strong ability to generate cash and is accumulating cash on hand, which should allow it to make another acquisition relatively soon.
• There is still the risk of the management deciding to continue to buy back shares rather than using cash to make more acquisitions in growing companies.
• The company is debt-free, which reduces the risk enough to consider it a strong buy.

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