No issue here...everyone just wants to make $....I see certain things in the market that trigger anomalies and DKS just happens to be one right now....too much competition from their own vendors....Nike and UA reporting exponential online sales growth sends up red flags....UA conference call said that the SA Bankruptcy wasnt going to hurt them told me they were getting the revenue from them online already with their online growth....DSP just can't sustain the price action of their vendors competing against them and its going to get cut throat because they all have a share price to prop up.....Ed selling his shares last week has always been a hint at an upcoming quarter miss....
Good luck with your trade, traderrob88. What you envision for the SP may happen. Nearly anything is possible in the short term. In fact, I may thin my long position (dating to 2003) if it hits $51-52 soon.
I don't mean to argue with your opinion. I only meant to correct your "facts". Best regards.
Ed is doing his job by remaining upbeat....listen to what I'm saying if you want to make money....I don't have a position in this stock yet...I will be buying Put Options when the stock hits $51-52 which it will before the next earnings release....I will then buy the $52 June Puts heavy...the stock will roll over after earnings back to the $45-46 level giving me a return of about 150% on my $....The analysts are saying that each DSP location where there was a SA will yield DSP $4.1 million per store.....THAT WILL NEVER HAPPEN....
traderrob88, did you listen to the earnings call or read the transcript as I did? You said “DSP in their earnings call said they were getting shredded by online vendors”. Your statement is a falsehood. If I’m wrong, prove it. NO WHERE was any such thing mentioned or inferred. This makes your other statements sound like a bitter, biased rant against DKS rather than an honest opinion.
You went on the say DKS management…”used the same excuse as apparel did with "unseasonably warm weather" They sell sporting goods!!!! Warm weather should have benefitted them.. but what do I know...”. Well, you apparently need to know more! If you had listened to the earnings call, you would have heard Ed Stack say “The results for the quarter were significantly impacted negatively by performance of cold weather-related categories. These categories include jackets, fleece, cold weather compression, boots and accessories. They represent a significant portion of our business in the fourth quarter and they were down double digits.”
He went on to say “Looking outside the cold weather categories, the balance of our business performed very well, comping up nearly 3%. In particular, we continue to be very pleased with our performance across important growth categories such as Athletic Footwear, Licensed, and our Women's business where we have invested in improved product content, merchandise presentation, shopping experience and marketing.”
Don’t you get it, traderrob88? DKS is a national retailer with significant sales volume in cold weather areas unlike Atlanta. Above average temps in winter lead to decreased sales of winter goods in cold weather climes. That is only common sense.
Speaking of online vendors, the DKS eCommerce business increased approximately 19% for the full year to over $748 million. They are doing well in that regard.
Leading the sheep to the slaughter.....to think that 4.1m in sales will go straight to DSP is ludicrous at best....if that much revenue per month was coming in per store...TSA would still be in business working off a 10% margin....these "analysts" must think we are stupid
Biggest thing is in the Atlanta market Academy has strategically placed themselves near a DSP and the parking lots don't lie....they are better stocked and better priced....there is a DSP and an Academy within 5 miles of my house....when Academy opened DSP became a cemetery after it just opened a year earlier....there is a line at 5 checkouts each and every weekend at Academy....the DSP location is a new building in an old shopping center which is killing it...thats been the norm in several atlanta locations...the real tell is how they really missed earnings but everyone thinks TSA customers are just going to up and go to DSP....not going to happen...TSA will clear inventory thru the 1st quarter so that won't help DSP yet, if ever. Then you have an upgrade from idiot analysts and their logic of DSP making a killing off of TSA is ludicrous....DSP in their earnings call said they were getting shredded by online vendors and used the same excuse as apparel did with "unseasonably warm weather" They sell sporting goods!!!! Warm weather should have benefitted them.. but what do I know...The analysts will pump this baby up to about $50-52 and then it will trade sideways until earnings....Buy the $52 puts before earnings and you will make a fortune
Hey traderrob88, following the competition is a good practice. I monitored TSA's performance back when it was a public company and was unimpressed with their published financials. Of course, DKS outperformed TSA at every turn and prospered.
How do you assess Academy's performance given their non-public ownership (i.e., no public disclosure of financials)? You have heard through unsubstantiated talk that they are DKS's biggest threat. That means nothing to me if you can't quantify the risk. Innuendo is not something I want to base my investment decisions on.
Academy Sports.....they are dominating the Atlanta market and the SE....I spoke with several DSP store managers and they all said Academy is certainly their biggest threat
Academy Sports is dominating #$%$ especially in the SE.....I have spoken with several store managers at #$%$ in the Atlanta market and they have all said increased competition from Academy has hurt their business...
Dicks Sporting Goods Inc (NYSE:DKS) was downgraded by analysts at Vetr from a “buy” rating to a “sell” rating in a research report issued to clients and investors on Tuesday, MarketBeat.com reports. They presently have a $42.50 price objective on the sporting goods retailer’s stock. Vetr‘s price target indicates a potential downside of 4.62% from the stock’s current price.
Several hedge funds recently bought and sold shares of the stock. Beacon Capital Management bought a new stake in Dicks Sporting Goods during the fourth quarter valued at $0. Alpha Windward boosted its stake in Dicks Sporting Goods by 29.2% in the fourth quarter. Alpha Windward now owns 11,160 shares of the sporting goods retailer’s stock valued at $395,000 after buying an additional 2,520 shares during the period. Denali Advisors bought a new stake in Dicks Sporting Goods during the fourth quarter valued at $424,000. First Midwest Bank Trust Division boosted its stake in Dicks Sporting Goods by 14.7% in the fourth quarter. First Midwest Bank Trust Division now owns 13,534 shares of the sporting goods retailer’s stock valued at $478,000 after buying an additional 1,730 shares during the period. Finally, Hills Bank & Trust Company bought a new stake in Dicks Sporting Goods during the fourth quarter valued at $551,000.
UBS reiterated a Buy rating on Dick's Sporting Goods, and raised the price target to $51.00 (from $42.00), following the company's 4Q earnings report. While the 4Q results that featured a -2.5% comp and a $0.02 EPS miss vs. cons did little to inspire, this was largely anticipated given the uncooperative weather. However, UBS calculates that there are 68 Dick's stores within 5 miles of a Sports Authority store that is closing, and 93 stores within 10 miles of a closing location. In a base case, it is assumed that the closing stores may account for $4.1 mm in sales per location.
Analyst Michael Lasser commented, "There were several important points from DKS' 4Q release. Notably, the stock rallied & finished up 0.5% as the market wants to lift the story out of the “challenged bucket” of retailers into healthier territory. While the 4Q results that featured a -2.5% comp and a $0.02 EPS miss vs. cons did little to inspire, this was largely anticipated given the uncooperative weather. Having this “bad news” out of the way should lift some of the uncertainty. Plus, it sounds like the biz is on better footing, with 0%-1% comp guidance for 1Q. Trends should improve over '16 as comparisons ease & investment initiatives kick in. This should provide a solid base for the shares to move higher, particularly considering they trade at an attractive 13.1x our CY’17 EPS estimate."
Exactly, particularly the highly leveraged shops such as TSA. This plays to the advantage of online shops like those of DKS. Great observation! You must be a DKS long (wink).
Played correctly, DKS management will gain significant sales through their brick and mortar channels as well. Imagine the additional revenues and margin improvement as TSA stores close.
This theory is not working out so well retail sales continue to be soft and the consumer it slowing down which is confirmed at wholesalers report soft grown go forward