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?
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.