Biz continues to be soft and they will probably report -6 to -8% comp which means there should be another buy opportunity.
If you own them I would definitely buy covered call to protect yourself
Looks more like he was aware that business was going to be soft and now that March has been reported I will say will conviction that this brand is dead until BTS at best
I got out of my short today....for a second time so I hope this stock goes back to $32-34 for another ride down
Sentiment: Strong Sell
Hope your holding because based on the March Comp number they are going to go even lower next month.....BKE is out of fashion and wont rebound until BTS.....Good luck
I cashed out of my short position today but they are going to report - 9% to -12% comps even with the Easter shift this means actuals are below the projections.
I would buy some covered call to protect yourself or maybe be ready to average down because this stock will be back to 30 when they announce on thursday
Not sure how long you have held this stock, but as I said, it's only been a month or so for me...Taxes would be too high if I sold short term, plus it has a decent DIV, which I take advantage of the DRIP, which is another 3% for me...If the stock goes sideways for the next year- not up or down any at all- my one yr return will be roughly 20% which I'm not complaining about... Of course things may go down as likely as they might go up, but I have no intentions on selling. I have confidence that management will be smart when the price is down (I.e. stock buybacks), and they will be able to whether some rough times. BKE has good fundamentals- great profitability returns, no debt, decent amount of cash to name a few. In addition, It looks to me like they manage inventory well so they dont have a ton of merchandise in warehouses. I think BKE is positioned well for the long term...just wish I'd have bought more when it was a few bucks a share cheaper.
I hear that there biz continues to be tough and I don't think I am holding much longer...I am like you I prefer to take my profit than nothing if March comps are soft
UNDECIDED what to do
Anyone have any ideas what is driving the big price swings? I haven't heard or read any thing that would make this stock gyrate so big...down huge the other day, up huge yesterday...I bought more the day it was down a few % but didn't expect a 15-17% return so quickly--I bought in Feb 9, 2016 and planned to add shares over the next few months but BKE has taken off faster than I thought- not that I'm complaining!
Not surprised that earnings were good, they have been doing cost cutting to help make up for (temporary) downturn in sales. We knew earnings would not match last year, ($1.13 vs $1.25 a year ago). I was happy to hear (and a bit surprised) that online sales were up about 7% over the same time last year, and year over year sales online were up 11%...I hedged my bets a few days ago and didn't buy more the day BKE dropped a few % (March 3d I think) much to my consternation, but I'm still planning on buying more, maybe Monday, as the 4% increase may yield to some profit taking... I wish BKE would have done more in the way of buybacks at the previously depressed prices, but now would still be a good time to in my opinion. This is a great company for the long haul I think...
I likely will buy some tomorrow and wait until earnings announcement to buy any more...Earnings announced March 11 i think? that correct?
Be care based on the Feb total sales they may lower the sales forecast for Q1..they may lower the sales to $255.0-260.0 which is below current forecast
I am waiting until after earnings to buy because I think this stock will go lower when they announce
I see this as an over reaction by the market, I'm buying more today I think...Maybe doubling my position. This is still a solid company and they will bounce back...Not a time for a long investor to panic... congrats on your short profits today..
thanks for being long....just cashed out on my shorts...and its doesn't look like they are going to have a good spring based on Feb Comps so its not time to go long either
looks like this guy has a history of disposing of shares not long after acquiring them... stock options . maybe he just wanted to diversify but i'd not be concerned til more insiders start to sell. I'm long on this stock...just bought in in early Feb, plan on buying more over the next few months. Still a great co with strong fundamentals
I do think this is the time for the company to do some share buy backs and hope they do a good deal of it...I'm holding my shares long term and if that is what will temporarily increase the price I don;t see a problem with that, especially for investors holding for the 3 to 5 yr horizon or longer. As for your comment on the market volatility lately, mainly as you attribute it to the fluctuations in oil prices, I tend to agree with you there. Actually in my opinion, low oil prices should actually benefit a retail company, as the exposure of a co like BKE to the oil and energy markets is strictly as a consumer, not producer, and lower costs of consumption will help lower costs for BKE and other retailers as far as transportation of inventory, as well as to a certain smaller extent, some production costs. To me the swings of the broader market are buying opportunities for those who believe, as I do, that oil prices will eventually climb again...which is why I'm also investing in the energy sector, namely, Chevron, which I bought in at back in August at about $73 a share... sorry for such a long, mainly boring post...
I agree with what you are saying but I think this company already runs pretty efficiently I am only saying that the market wants to see comp growth since it indicates a strong brand and if you don't have comp growth you will not see EPS growth.
They run very few little promotional activity so they cant reduce that to improve EPS but if comp remain soft they could initiate a Share Buy Back to increase the EPS......and I think that if comps do remain soft there is a good chance of that happening.
I am in no rush to buy any stock right now with the volatility since the market is going to continue to see huge dips any time oil prices drop so there is lots of opportunity to by
Good Luck....we will see where is stock in headed March 5th
Interesting point, though I'd have to respectfully disagree to a certain point. I think the fact that this is a well run company with smart management means to me that they will be able to make BKE more efficient and even if it takes a little while they will increase profitability for the long term. This is the time to buy... I've added to my stake over the past week, and currently it accounts for roughly 12-15% of my portfolio. I likely will buy more over the near term, and would encourage others to follow suit....I think at this price I see share buybacks coming, or at least I'd like to see that.
Sentiment: Strong Buy
Although this retailer does a good job with managing inventory I believe the comps will continue to be soft as there store fashion continues to be on the wrong side of trend.
If denim comes back for BTS it may work in there favour but I am going to sit on the side lines until they can turn sales around