Jan marked the 27th consecutive month of comp gains for Pac Sun in the double digits. Comps were up 16% for the year. '98 will bring nothing but growth for this company and increased stock prices.
I seemed to notice that here, on the east coast, 2 weeks before Christmas, the business section started with the "lackluster holiday sales" bit. I don't know if other city newspapers stated the same, but I estimate that some got the retail 'jitters' and decided to sell. Or just stopped buying, because volume dropped down also during the same period. People may just wait until the numbers come out in a few weeks to jump back on the band wagon.
I'm glad to see someone else out there is looking at PSUN as I have been. Always have been mystified as to why there is so little discussion on a stock that looks great and yet has days when it drops or gains so much on such little volume. I wish I
had info as to today's drop but can find no news anywhere on it. Except the news that teen retailers are doing great and PSUN posted good same store sales recently. Can't understand why the stock would take a hit with news like that. Anyone else with info?
I like this stock as well and can't figure out why the big boys rate it so low. I have not bought any yet but I think I will in the near future.
Anybody ever visit one of the stores? I have and I liked what I saw. Based on the on the stuff I've read so far, unless I missed something, I think it is a good investment.
I likewise wonder why.
One connection is the percentage of a stock owned by institutions, in Pacific Sunware's case it is 91%!
I think all the Fund Managers use the same program, or are themselves programmed the same way.
You ever notice how the fish in a school all react in the same way and at exactly the same time to a threat?
Today's drop would seem to be related to two factors:
1) Buckle Inc. (BKE) was downgraded today by one broker from strong buy to outperform based on valuation. They are in the same industry as PSUN.
2) This month's same store sales (15% same store & 52% total) while great, are lower than last month's (20% & 58%).
I still do not understand the low valuations for PSUN. They are growing at 78% per year and have a PE ratio of only 30. This would seem to be a great company & today's selling was by people looking for an excuse to sell after the post split runup. The high volume makes me think it could be another month until PSUN sees a new high.