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Columbia Sportswear Company Message Board

  • despammed despammed Feb 4, 1999 10:14 AM Flag

    What's wrong with this picture?

    A PROFITABLE company, with historic revenue
    GROWTH of over 30% per year, has a P/E ratio of
    <17!!!

    Is the slump caused by the small float and pure
    ignorance on the part of investors? We're down another 10%
    this morning, bouncing around $15. I want to take this
    as an opportunity to add to my holdings, but want a
    better understanding of where this is going.

    At
    Southern California Ski Resorts this year, I noticed much
    COLM product on Snowboarders and Skiiers alike. This
    is a good thing, but why the slumping share
    price?

    Frustrated in Michigan,

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I totally agree with you all. This stock is for
      value investors. I don't believe that large gains will
      be made in the short run....it will be over the long
      haul. These products are just plain good. They are also
      well received by the public. I currently live in
      Korea, and the local merchants cannot reproduce
      COLM-named products fast enough. They are not copying North
      Face or Patagonia. I think that this says something
      about name recognition.

    • First of all ... everyone knows the skiing is
      better at Lake Tahoe. Try going there on your next
      western ski trip. You will see plenty of COLM gear at
      Squaw and Heavenly, Sugar Bowl and Sierra too.


      As for the stock, the float limits the institutional
      interest. Also, there is an image that this is a private
      company with a few shares of stock floating around for
      tax/liability reasons. You see virtually no press on the
      company except earnings.

      With a float this thin
      the market makers are always messing with the
      bid/ask. Also one person buying or selling 1000 or fewer
      shares may have a dramatic effect on price. (that is why
      institutions don't get in, they can't buy enough without
      spiking the price).

      Right now, value investing is
      out. Money is flowing away from low PE stocks into the
      much hyped .com stocks. The tide will turn back to
      value. I plan to own this stock for a long time. If it
      gets really cheap, I'll probably buy some more. It
      won't make up a big % of holdings but I believe in the
      company. If you are looking for a quick hit ... go
      elsewhere, If you want to own a solid company ... stay put.


      An interesting comparison is TNFI the North Face,
      they are a direct competitor (a but more pricey, but
      frequently in the same stores) and just got into footwear.
      Take a look .. similar multiple, small float, etc.


      Right now It is not the stock, it is the type of stock
      that is driving COLM down.

      • 1 Reply to buybrio
      • COLM is ~6% of my stocks, and I've been wanting
        to add to it. I guess I should look at this as an op
        to buy.

        The point on institutional investors
        makes sense, though I wonder if that will change
        anytime soon. The low market cap also makes me a little
        nervous.

        TNFI is not as attractive for me - their stuff is
        nicer, but I think COLM has better year 'round
        appeal.

        BTW - I only do Big Bear 'cause it's super close to
        my in-law's. (which I was visiting for the holidays)
        I'll be hitting Whistler for 6 days at the end of this
        month for some REAL Skiing!

    • might get in at 15 - not sure why it is dropping now. I see a lot of COLM stuff here in WI.

 
COLM
56.37-0.24(-0.42%)May 22 4:00 PMEDT