Limited Brands said it should earn somewhere between 67 cents and 87 cents per share in the upcoming fiscal year. That leaves a lot of leeway for management, doesn't it? I hate wide ranges like that, but then again, they can work to the advantage of investors since analysts could be surprised by the eventual outcome.

If the retailer hits the low end of that range, then that will make the P/E on the stock as of Wednesday's closing price roughly equal to 17. The shares actually rose in the after-hours session yesterday by 3%. That isn't the most robust response to an earnings report that I've ever seen, so I'm not sure that the market thinks that Limited Brands has what it takes to thrive during whatever remains of the current slowdown (of course, we'll have to see how the shares perform during Thursday's regular trading session).

Still, Limited Brands is somewhat cheap. Would I rather investors get the stock cheaper? You bet. I wouldn't be in a rush to establish a position in the retailer. Mall tenants like Gap (NYSE: GPS), Abercrombie & Fitch (NYSE: ANF), JCPenney (NYSE: JCP), and American Eagle Outfitters (NYSE: AEO) are all desperate for increased traffic.

I know I've missed the move on a lot of these stocks, but when I look at how they've all bounced strongly off their 52-week lows, I have to think that a correction may be in the offing. The key phrase here is "margin of safety." Look for one whenever you can.

Disclosure: I don't own any company mentioned; positions can change without notice.