has BKE as a #1 Buy today, but had it as a sell back at the end of August when the price was much, much lower. Momentum investing makes no sense. Value investing is the way...
I never really short (do buy puts, write call some), certainly not tempted to short a quality dividend payer like BKE. I don't want to be in the dividend paying bizness.
Just hard to believe the next 1-2 years don't look roughly like more of the same, so we'll (try) to make that bet..... (today is a good sample, no?)
ChrisHasty is right, I've been selling shares in my IRA accounts, but holding onto shares in taxable accounts to avoid capital gain, I expect this stock to be at 31 by July. However, I will not short BKE, it is too risky shorting a company that is run correctly, with intrinsic growth an inevitable proposition.
I'll agree with that. They will be in a holding pattern for quite some time with their growth rate. An increase in the quarterly dividend would raise the trading range, but I don't know if that's what management wants. I think they'd rather see the price crash once in a while so they can buy back shares on the low-buck.
I don't mind at all. This is a cash cow on a buy-low sell-high operation. Anybody that knows this stock knows to NEVER buy near the top unless you want to twiddle your thumbs for 6 months at a time and collect a few dividends.
agreed. doesn't fit my agenda, but if I was CEO think I'd double the Q dividend (cash flow seems quite reliable) and really stick it to the shorts. Just for fun. Still hoping for 25ish, maybe late Q1/early 2?
I wouldn't feel bad owning these at 30, but I wouldn't seriously think about buying unless they were more like 28 or less. Lets face it, nobody that got burned 2-3 years ago in the market is going to forget it when they see the price start to slide. If earnings are going up at single digit rates there is NO reason to buy this at double digits higher than it's recent prices in the mid-to-low 20's.
These shares are trading at the high end of their P/E range (which was established when there was more opportunity for growth), and there isn't as much cash on the books as there was a few months ago.
If BKE shares aren't cheap, or don't get cheap, I'll invest my money elsewhere... period.
Chart is starting to look pretty shaky. I think it's possible that this could see a pull-back when they report comps. December comp from last year will be relatively tough. I think BKE will show a positive comp, but I don't know how much that will help because everyone expects it since the holiday season was generally good.
Q2 numbers are an obsticle that pulled down EPS and now they are having to make up for it. There isn't a big growth story here to justify a high multiplier, so I think it's pretty safe to assume this will see some strong headwinds with ANY sign of weakness right now. This could possibly be an inflection point with blow-out earnings, but I'm not holding my breath for it.