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Sport Chalet AŞ Message Board

  • dowtr8r dowtr8r Apr 4, 2007 12:55 AM Flag

    DKS vs. SPCHA/B

    Crude Analysis.....

    $3.15 Billion Market Cap excluding cash / 294 Stores = $10,000,000 per location.

    Sells at 1 x's rev of about $ 3.15 Billion

    $149 Million Market Cap / 44 Stores = $ 3,385,000 per location.

    Sells at .40 x's rev of about $380,0000,000
    (selling at 1 x's sales or $10,0000,000 per location would result in a share price of $ 31.50!!!)

    What am I missing???

    Thanks in advance....

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    • You are right on. The only one ingridient that I currently see is that one has sponsorship and heavy volume and the other doesn't, so far that is. Things tend to level themselves off or as one smart scientist said once "Things average out".

    • Very interesting analysis. While I haven't "audited" your numbers, if they are correct it is a clear example of the value in SPCH (or possibly the overvaluation of DKS).

      2 Potential Reasons to explain (part of) the discrepancy:
      1. Earnings - doing the same comparison on a PE basis would value SPCH more around $16 per share.
      2. Insider control - no question the control of SPCH by insiders has dampened the stock price. SPCH doesn't go into play until Olbertz team says so.

      Continued patience will absolutely be rewarded!