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Why QKL Stores are up 52 Percent Thursday (QKLS)

Shares of QKL (NASDAQ: QKLS) Stores are up 52 Thursday presumably, on a Seeking Alpha article that laid out a case that the stock is undervalued and should be priced well above $10.

QKL Stores is a China-based grocer that operates under the Independent Grocers Alliance, or IGA–a United States brand that is best known for its chain of IGA grocery stores. The author compared the P/E of American grocery stores like Supervalu (NYSE: SVU), Kroger (NYSE: KR), and Safeway (NYSE: SWY) and determined that if QKL delivers on its conservative EPS estimate, it should be priced at $15.12 at a minimum.

[stock-tools exchange="NASDAQ" symbol="QKLS" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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