THE WORLDS BIGGEST retailer,said it controls only 3% of the worlds market and predicts strong growth! My point? Imagine how big Dicks in time can grow! Walmart also at one point in time traded at a pe 0f 30+ over a ten year period,and still made a 20 fold gain in that time! Hold on to DKS imo, because this is a easy 10 to 20 bagger.
You should be far more worried about WMT 'becoming' a specialty retailer (or more importantly getting the same products as one WOULD GET in a specialty retailer), and then lower the price so far no one really makes money. Could happen, and should be in the back of one's mind -- 'cause I can guarantee you, it's in the back of the markets'!! This 20-30 bagger crap is just that -- complete crap. Now MAYBE one can get a double from here, but the ONLY way to get even a 5-bagger is after a very large price decline first -- sorry the laws of 'numbers' (and gravity for that matter) dictate it, not me. All JMO.....Good luck to all......
BTW do you really think if this was possible from these levels, mgmt wouldn't be dumping their stock (like they have been) en masse?!? All JMO.....
Walmart becoming a specialty retailer? Give me a break...I've been in Walmarts from Chicago to Indiana to Kentucky to Texas and I have yet to find an associate that could tell you anything about a specific product. They are actually usually pretty friendly and helpful at locating things, but actually being able to tell you what rod to use for fly fishing or what club to use to minimize a slice...not going to happen.
As for management dumping stock, of course they should be taking profit now, who wouldn't at a 2-3 bagger? It is not like they are dumping all their stock. It is the smart thing to do to sell off some when you have a great profit. History has shown that people that keep all their assets in one stock can get destroyed. Just look at Enron, and at my previous job I had coworkers that had 100% of their 401(k) in the company stock and were upset when it dropped from 55 to 30 on bad news. DUH! Diversify, and if DKS management wants to take some profit and diversify their investments, go ahead, I want smart people running the companies I invest in.
Hey Val couple of quick points from my perspective...
DKS has just over 23 million shares outstanding, with 37% held by insiders, leaving approximately 14.5 million in the float. Of that 14.5 46% is owned by institutions/mutual funds, thus leaving a little over 7.5 million "for the street". That's not a whole lot of shares available. Could be a good reason for the price swings and large bid/ask gaps, on light volume.
I believe insiders haven't sold for over a month, and the street has been happy to gobble up the shares they have made available. Their selling has caused little downside pressure.
Keep in mind DKS has been around for a long time, and a lot of the guys selling shares finally saw there ship come in. I don't blame them for securing their financial future, but you have to admit, they left a lot of cash on the table :)
I do agree that from here a 5 or 10 bagger is very far fetched near term, unless as you said one got in at lower levels. Long term, one only knows what DKS growth plans are beyond the next year or so.
And I do agree the world should be more concerned with Wal-Mart than the Yankees...
I don't think DKS will ever be a Walmart type in terms of controlling x% of the world market, but given that it has yet to expand into close to half of the US, I agree that it could be a 5-20 bagger if they do the expansion properly. Every move the management has made recently sure seems to point to that.
I am looking forward to them expanding into Texas, but no idea when that will happen. It is a big market, especially with all the hunters that seem to surround me, but finding good employees here might be a problem, customer service down here is horrible except at the absolutely best places.
A 5-20 bagger sure would be nice, but I'm already happy with the 17% gain I have locked in :)