Stock Watch: Bluefly Soars After Soros Investment

The stock of online outlet store Bluefly (Nasdaq: BFLY), which sells clothing and home furnishings, rocketed more than 22 percent, climbing 2-1/4 on 12-3/8 after the company announced that affiliates of well-known investor George Soros is investing $10 million in the outlet store. The investment will give the Soros affiliates a 19.5 percent voting and equity interest in the company.

After the stock soared on Wednesday, the 19.5 percent stake is worth 11.7 million, meaning the new investors already have gotten a nice return on their money. With a market cap of just $60 million even after Wednesday’s, Bluefly could be a compelling value play now that Soros’ smart money has a big stake in the company. Bluefly has strategic alliances with many major portal and destination sites including AOL.com, Yahoo!, Excite, the Go Network, Lycos, MSN.com and Women.com.

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