Although I have been high on BKE this year, I feel that they will be long to rebound. no matter how well a company is structured, people are going to hold out on consumer spending until things around the world stabalize. May not see BKE rebound till holiday season. Sorry folks, but consumers are going to HOLD on to their $$$$$ for now
I bought into BKE several weeks ago and as of today finally got into the black. One thing I have found in researching this industry further is BKE's numbers vs the rest of it's industry isn't as impressive as their numbers look on their own. I believe this is holding it down and will likely do so in the future. However if they have several more suprise quarters it may finally get more attention. Since you asked, another stock that could get some big play is TLXN, check out the Yahoo message boards on this one, what a soap opera.
In response to all your questions, yes, BKE is one of the best retail operations out there. Is has wonderful management, no debt, etc. It did a 174% return in 1996. However, if you want to play this longterm, it's a good buy. Long term, however, could mean a month or a couple of years. I, as all of us, do not have a crystal ball. All I do know is that the population will hold tighter to their wallets. That is the ONLY reason I let go of BKE. I have other stocks that I feel will outperform BKE's percentage increases over the next months.
do you really think that teenagers give a hoot if the Russian, Latin American and Asian economies crumble? They're still going to want to wear what their friends are wearing. And that usually doesn't mean last year's style.
We're not talking Gucci or Armani here.
The world economic news may affect the stock price, and you may be correct a rebound for BKE. But, assuming that the kids hang on to their after school jobs, they'll probably keep right on spending.
BKE is a great stock. however, when the checkbook has to be considered, consumers ( their parents) are going to be hesitant to spend $$$$ on extra high end junior clothing. Trust me on this one. Instead of allowing the kids to spend $200, they'll only allow $100. this cuts into BKE profits. Retail is the most volitile mkt at this time