I believe that it will be a very cold winter this year and natural gas is much more expensive. What alternative do people have to using more energy to heat their homes? Wear coat or wear more cold weather clothes. It seems like an idea that might work.
Two other things work well in Columbia's favor. The stock buybacks have been silently happening but may become more prominent. We must also consider the European expansion. The new guy, Gils, over in Europe may be able to significantly grow COLM's exposure in those cold weather markets. Plus, there are fewer competitors in the cold weather genre out there.
Besides the valuation and excitement over Columbia is down right now. It's under the radar and it's a good time to buy this stock.
This is just my analysis. What does everyone else think?
Also don't forget the gulf stream weakening and the effects on Europe. Record cold in England, record Blizzards in Paris, may be bad for the EU, but good for us. These people gonna need some cold weather gear!
---------------------------------------------- Proud owner of COLM since 12/27/05 @ $47.25
>>Two other things work well in Columbia's favor. The stock buybacks have been silently happening but may become more prominent.<<
Again, from the second quarter earnings announcement:
"Our board previously authorized an aggregate $200 million share repurchase program, and during the second quarter, we repurchased approximately 2.6 million shares for $116.5 million. To date, we have repurchased approximately 3.5 million shares for an aggregate purchase price of $164.1 million, with $35.9 million remaining under the program."
Sounds like the existing buyback program is almost completed. Reindeer, have you (or anybody else) heard anything new on the BoD aurthorizing an additional repurchase program?
Based on the co.'s cash flow and balance sheet, one would think that the BoD would not hesitate to buyback more shares at these depressed levels - unless the co. might have another use for the funds.
As much as I like dividends, given a choice, I would much rather see the co. continue to buy back shares at this time, waiting to initiate paying out a dividend until after things are back on track and the stock price is again back to a level where it is no longer a compelling buyback candidate.
>>Plus, there are fewer competitors in the cold weather genre out there.<<
What is the industry trend right now - are there going to be even less players in the outdoor gear field in the short- and mid-term, or are new players coming aboard/expanding their reach?
Any thoughts as to the possibility of COLM making any significant acquisitions in the near-term, bolstering their market-share?
Conversely, what are the odds of COLM being acquired by another player (assuming for the sake of argument that the Boyle family would be interested in selling)? Who might be such a company? (One name from left field comes to mind, but I want to keep that idea under wraps until others have had a chance to weight in.)
I believe that it will be a very bad Fall TV season this year and renting from Blockbuster is much more expensive. What alternative do people have to watching very bad television shows? (Besides reading thoroughly reaching and, therefore, amusing internet postings, that is.) Watch bad TV or actually get out of the house and do something outdoors (wearing COLM gear in the process). It seems like an idea that might work.