Just a thought...
From the last presentation Scarlet mentioned the ideal conditions is a very hot spring and above average rainfall. Well, this spring hasn't been warm at all. I wonder how this will effect lawn mower sales? Anyone have a chance to visit a store and ask a manager yet? I plan on stopping by a couple this week to see what they say, I'll post my findings.
Many of these northern stores were quality. My guess is that when they opened last year same quarter, mower sales were not huge items. Also, margins aren't as good on mowers as other items and therefore aren't a huge driver to bottom line. Key may be how these quality stores annualize. I'm reminded that Scarlet said first year stores lose money. After that begin profitable margins. The rolling openings in Q2 last year will provide interesting comparisons.
<<Sales on lawn mowers are down. These are big ticket sales, that Home Depot is getting.
Even Lowe's sales on lawn mowers are down>>
Got a link that backs this statement up? What's your source?
Long and holding...
When someone says a stock is down because its a buck or 2 from its all time high, we have probably been honored to listen to the all time king of morons of the message boards.
what a loser.
If your playing for %5 or %10 precent then maybe.
Fundamently I can't short anything at a new high or close to it like TSCO. Its trading range just keeps going higher and higher.
I'm long at 41. And the only thing I would even think of doing is buying more. (though I am not... very happy with the size of my investment here)
I buy strong stocks..... short weak ones. Not vice versa.
I go with the trends not against them.
I stay with the MM's. The big boys know what the stock is worth. And move it to the value they see fit.
Shorting now would be a slap in the face to MM's.
Just my philosphy.
I believe his exact words were a warm early spring with above average rainfall. Spring was warm early and wet but did cool a bit in the northern tier states. The rain and moderate temps will make things grow big time only the timing of when the mowing, cutting, weeding etc is done is in question. Net net it will be a big positive.
is because they are launching a major direct 800 business model later this yr..their catalogues are highly desired..a farmer can simply place orders wo going into the store and the recreational farmer/.second home owner will love this catalog and buy things like crazy..so the revenue model will exponentially spoink into next yr.
The catalog has been in existence for a very long time. I don't know about the 800 number, please explain.
I don't see the type of revenue growth you are talking about. TSC plans to grow its store base by 10% per year and expect SSS to grow by 4.5%. So at best we will see 20% revenue growth with expanding margins, which is good but is no where near 50%. 50% can't be done unless we see same store sales growth of 20% across the board, I think they could grow at 10-12% in some areas but not nation wide. I'd look at 20% revenue growth being the top, however, 20% growth is still incredible and will allow this stock to grow in price for several years.
Should see the rally continue.