This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

November 13, 2008 - Oxford Industries, Inc. (OXM-NYSE) engages in the design, production, sale, and distribution of branded and private label apparel, and footwear for men, women, and children in the United States and the United Kingdom. Its products include branded and private label dress shirts, suited separates, sport shirts, casual slacks, outerwear, sweaters, jeans, swimwear, westernwear, and golf apparel.

It also holds licenses to produce and sell various categories of apparel and footwear products under the Nautica, Dockers, Geoffrey Beene, Kenneth Cole, Oscar de la Renta, Evisu, Tommy Hilfiger, and United States Polo Association brand names.

The company's third party license arrangements for its Tommy Bahama products include the product categories: bedding and bath accessories; men's and women's watches, eyewear, fragrance, neckwear, shoes, belts, and socks; table top accessories; wallcoverings; rugs; ceiling fans; indoor and outdoor furniture; umbrellas; and luggage. Its third party license arrangements for Ben Sherman products comprise the product categories: backpacks, travel bags, wallets, leather outerwear, jewelry, underwear, sleepwear, gift products, fragrances and toiletries, accessories and small leathergoods, neckwear and pocket squares, hats, caps, scarves, gloves, suits,and dress shirts.

Oxford Industries, Inc. distributes its products through wholesale distribution channels, including chain stores, department stores, mass merchants, specialty stores, specialty catalog retailers, and Internet retailers. In addition, it operates retail stores, restaurants, and Internet Web sites. The company was founded in1942 and is based in Atlanta, Georgia.

After all that, this is a company that had $1.09 billion in revenues last year, and carries a market cap of $150 million. In other words, this one is small and only for the most adventurous investor.

There are good reasons for more intrepid investors to spend time with this stock. While small in many ways, the numbers look good. Take earnings for example. In 2002, they were 74 cents a share. The next year, they jumped to $1.34, followed by $2.38 in in 2004. 2005 saw $2.87 followed by $2.88. Last year, they inched up to $2.93 They changed their fiscal year to end in January this year, and analysts see $1.90 for 2008 and $2.05 for 2009. Of course, these forecasts haven't been revised in the last week, so expect them to be lower, but by how much, no one knows.

The stock sells for $9.61 as of this writing. Obviously investors expect earnings to be much lower. The range for the stock's P/E over the last 8 years was 6.9 in 2000 to a high of 16.4 in 2006. Now it's trading below the lowest level and at a price not seen since 2001. (Prices adjusted for 2 for 1 split in 2003.) The all-time high for the stock came in 2005 when it reached $57.60.

Of course, everyone is expecting the worst holiday shopping season ever. Consumers aren't buying, especially something that isn't a necessity. But that doesn't mean all sales stop, and management has done a good job of inventory control which translates into fewer markdowns later. Still, consumers have cut way back, and Oxford brands will feel it, just like all retailers.

Typically, fashion retailers lead the market down when the economy softens. But they also lead it higher when signs of spending return. That would suggest investors with an interest in this stock don't have any reason to rush into it. It will most likely continue to feel pressure until sales figures are released that suggest investors have been too pessimistic. Most likely the most meaningful numbers will be out in January when holiday sales will be reported for all retailers.

Still, for patient, yet adventurous investors, there are several compelling reasons to consider the stock at its current low level. First, the dividend is meaningful at 72 cents a share, for a yield of close to 8%. It takes 40% of earnings to pay it so it's fairly secure. But if earnings diminish, so will the dividend.

Second, there are 2 very fashionable, established brands here: Tommy Bahama and Ben Sherman. Both have strong followings and have room for brand expansion once the economy appears healthier.

More numbers: Price to Book is .37. Operating margin was 4.85% in the last 12 months with a Profit margin of 1.38%. Return on Equity was 11.6% in 2007 with a projected ROE of 6.5% for 2008 and 2009. There's $5.24 million in cash on the books making for 33 cents a share in cash. Total debt is $221.63 million for a Debt to Equity ratio of .536. The Current Ratio (current assets divided by current liabilities) is 2.2. Book Value is $26.07 a share. Beta is 1.81. There are 15.86 million shares outstanding. Insiders own 14.15%.

Dig deeper into Oxford if you don't mind high volatility and a small cap stock. It's delivered good earnings for several years, established strong brands with good potential for expansion, and offers a great dividend (though for how long remains to be seen). There's no questions there is still a rough road ahead for Oxford but patient investors who want to ride through the volatility should see some good rewards when the economy heals. But more research is needed by anyone considering this stock.

Company Web site: www.oxfordinc.com

- Ted Allrich