Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: Villalobos One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 139  
Subject: Time to Buy $13.50? Value Play? Date: 2/15/2000 1:11 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
As you know I've recently been buying “The Buckle”. I jsut bought more at 13 1/2.

If you look at this company's Stock price recently you will see that it has become a real dog. It went from a high of $32 to a low of $13 and is now trading at ~$14. A lot of this has to do with recent poor SSS(same store sales).

The interesting part of this company and why I'm making a Value play at it is that it has never had a terrible year. It has just been steadily chugging out profits for the last 10 years with no debt funding and has had a growth rate of 32% averaged over the last 5 years. It is now trading close to its all-time low P/E of 7 (its currently at P/E ~ 8.6). The company's average P/E in the last 5 years has been 17.8. If the company ever goes back up to its average P/E for FY 2000 earnings I'll be making over 100% on my investment. Of course it may take some time, but even taken out 3 years from now I'm looking at a 25% APG on my investment.

There has been plenty of new competition that has popped up but the 12-24 year old population has also grown and is expected to keep growing for the next 13 years out. I've visited the company's local store and like what they are doing and the employees are happy to be working there. I believe this company has quality values that make the P/E of 17.8 or higher a reality. Its current low price to earnings makes it a very safe place to keep my money right now and the analyst consensus of 5-year growth is 16% per year.

As long as this company stays relatively the same I've got to figure at least a 16% growth with the potential for 25% or higher in the coming years.

Comments?

CV


Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement