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No. of 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.



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