Jo-Ann Stores (NYSE:JAS) moved up $0.99, or 3.29%, to $31.05 today after the company announced positive earnings for the quarter. The specialty retailer announced a net loss of $0.07 per diluted share compared to $0.28 per diluted share a year ago. Same-store sales - or comps - increased 1.8% this quarter compared to a loss of 3.9% a year ago.

Investors are also carefully watching the bidding process for the company, which may end up topping $1 billion. The group of bidders reportedly consists of middle-market private equity firms including Leonard Green & Partners and Freeman Spologi & Co. There are also reports that larger firms like Blackstone may be looking at the company. Final bids, however, are expected to be in by June when Lehman Brothers will then evaluate them along with the board of directors.

But just how much could the company fetch? Well, the company's improving margins and growth prospects may certainly increase the final bidding price. The company's main competitor, Michael's Stores, was also recently acquired for 12.8x EBITDA and a 30% premium to the stock's closing price on the day it announced that it was exploring strategic alternatives. These metrics seem to confirm the fact that the Jo-Ann could fetch a nice premium. This makes JAS a stock worth watching!

Related Companies
Hancock Fabrics (HKFIQ)
Wal-Mart Stores (WMT)
Pier 1 Imports (PIR)