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The Buckle, Inc. Message Board

  • chrishasty_1982 chrishasty_1982 May 17, 2010 5:19 PM Flag

    Do we see a real breakthrough this year?

    When you look at the last 15 years with BKE you can pick periods where we've seen relatively stagnant prices for approximately a couple years. We have kind of seen that looking back from now, but at the same time earnings have gone up a lot. Now we are seeing P/E at 12.x times earnings, so there is technically plenty of substance for prices to perform going foreward. Do you think we will see the breakthrough this year and have a year or two of good price action?

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    • bill1217 May 18, 2010 1:12 PM Flag

      That's a tough call, and why I think in this market that it makes sense to take a core position in good stocks and trade accordingly in the same stock. Right now, and this is just an opinion, I think the market is worried about a slowdown in retail. With BKE you throw in the worry that margin expansion cannot continue forever. As someone stated earlier it might make sense to trade carefully now and look to invest based upon the expected dividend in Oct.

      I always worry about retail, but both BKE and ARO have pristine balance sheets. Right now I have no position in BKE. The gamble is that it runs away from me, but I do think there is a greater chance that I get to buy it at 31 - 32. Time will tell.

    • macro econ recovery, continued S&E growth, continued high margins, low interest rates vs dividends here, more visibility in the NE, sure, time to move into PE 16-20 range, why not?

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