So I'm a beginning investor, and I just wanted to make some sense out of the possible reasons this stock is going down. The earnings report was encouraging, however I'm just baffled and I would like someone to try explain the recent downward movement to me in layman's terms.
Any help would be appreciated!
Thanks a lot :)
For starters, WHAT is called humor? And I don't grasp your meaning when you say that my post proves how "emotional" I am (or how emotional you think I am). Nothing in my most recent post suggests or proves that I am emotional person; I think it should simply be perceived at face value and that's it.
Oh and by the way, I never thought you were concerned about me; I was being "humourous" at the end of my post when I thanked you for being concerned. I was being sardonic.... something you obviously understand well.
I think everyone is a little stunned here to be honest...of course, sometimes the market just doesn't make a lot of sense.
Look, the only fear at all that exists with Buckle has to do with sales growth/decline.
Buckle is the only retail stock that I know of that has been able to increase sales signifcantly and incredibly consistently over the last 2 years. However, the last two reported months of sales (June and July), were the first time in the last two years where sales growth didn't hit double digits %. This has caused a bit of fear in the analyst community (key word there being ANAL), that BKE's numbers are going to continue to decline.
Here is why this is stupid:
BKE is one of only two in it's sector (ARO and BKE) that are consistently GROWING in this economy. We're talking about a company in BKE that is BEATING store sales from last year in this economy. Most of it's competitors, excluding ARO are shrinking (some significantly, see ANF). Now this is amazing in and of itself. However, the more amazing part is that BKE is up against sales #'s in 2008 that significant (20-30%) beat sales in 2007.
IN short, BKE is putting up numbers in 2009 that beat 2008 numbers. Those 2008 numbers aggressively beat 2007 numbers. Nobody else except ARO is doing anything similar, and even ARO didn't have nearly as impressive #'s in 2008 as BKE.
Yes, there is a little concern out there about sales growth, but they're treaing BKE like it operates in a vacuum, instead of comparing it to it's sector and seeing what a phenomenal job that it's truly doing. Truly a world-class operation.
THe good news....as long as BKE keeps doing what it does best...this will all correct itself. If the sales #'s go downhill dramatically, well then those analysts that make the big bucks will have earned their pay...