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Stocks B / Buckle, Inc., The


Subject:  Re: Great Buy and Nobody Knows Date:  4/18/2000  9:42 PM
Author:  04steve1467 Number:  102 of 149

From your response I am guessing you paid around $30.00/Share two years ago. I know it seems bad but you should consider buying more at this opportune time. Let's take a look at The Buckle (BKE) for the last 5 years. Average sales growth for 5 years is 21%. Average EPS growth is 34% (we won't consider last years 40.77% growth for us Fool's like to be consevative). Now last year they had Earning Per Share (EPS) of $1.64. If my math is correct and I am sure it is then next year it will be $2.19, the following $2.94, 3.94, 5.28, 7.08, 9.49... You get the idea! Now the real kicker! If I invest $13.00 and I want 15% return on my money I get $1.95! That's right, just EPS estimate will earn you 15%. So I am greedy and want 25%, now that comes out to be $3.25. As you can see you will get that in 3 years. Now once a few more people start to look for these real buys in the market, you can bet this opportunity will not be around for long. These things happen because people like to follow what other people are doing and buying(ORCL,CSCO,MSFT...)and I am no different but now that I have crunched these numbers again I think I am going to buy some more again(BKE that is). I can't help but tell you next time listen to advice and then do your own homework when your Mom has a hot tip. Warren Buffett has made an average of 20% a year looking for companies like this and you can to. Don't tell anyone about this Company and all of us Fool's can have a longer time to buy. The only risk I see is if young people stop buying clothes to look cool. Yeh, there is no risk. This is getting long so one last tip: read "The Essays Of Warren Buffett" by Lawrence A. Cunningham. The best $15.00 I ever spent(Except for BKE shares I just got for $12 7/8!!!!! If anyone wants to give me some critical feedback I would sure take it.

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