The selloff was overdone. I will try to explain the best possible way. I was among the people that bought COLM after Jim Cramer recommended the stock in his show. Back then, the story for this stock made perfect sense when Cramer explained the reason to purchase the stock. After that report the stock moved from $53.00 to $61.00 Most of the time the stock moved up silently with small volume and good news from retail reports all around. COLM had a bad start on the east side of the USA because we were enjoying mild warm weather before the big cold winter weather began to slam the entire USA. Europe is also facing the same kind of weather as well. Remember COLM does not sell only in the USA is everywhere including China. If you are current with the stock market, you know Europe is facing some financial problems with some counties but not all Europe. On the other hand China keeps booming like fire. Jim Cramer mentioned that some of COLM apparels could be found in Nordstrom (JWN) stores. He claims overstocking of COLM apparels. According to Jim is due to poor sells. I find that difficult to believe in particular when Nordstrom reported store sells better than previous month. Jim Cramer also claimed Nordstrom as his second best and improved retail store. Lululemon Atletica (LULU) recently reported their quarter and was spectacular. The funny part is the fact that many analysts following the stock have mix thoughts about the Lululemon (LULU) earnings report.
I want to remind you that COLM’s previous quarter report was bad due to shipping cost. They missed only by 4 cents. The company also mentioned many pre-orders from many stores to deliver. They also gave a one-time dividend of $1.50 I Love and follow a lot Jim Cramer but I know with experience that many times he is right with his stock predictions but the majority of the time he is wrong. Jim Cramer has kept me away from good companies like Amazon (AMZN) and Netflix (NFLX) I suggest you to do your own homework. I see COLM with potential to move higher. Please let me know what you think.
P.S.- Check out the link below from my previous post message on Nov 16 2010 and will show that the basic fundamentals for COLM are still there.