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Columbia Sportswear Company Message Board

  • roncai67 roncai67 Sep 18, 2002 6:45 PM Flag

    some questions.

    After reading colm's financial statement today, i have some question on my mind.
    since the company's revenue has reduced almost 60% (net income down 80%) since sep/2001, how come our stock equity has increased by 12% to 377mil?
    i may find out why,
    1. there is 20% increase in equipment and plant to 116 mil (compare to sep/2000). they are making A LOT LESS money and investing more in equipment, why? the balance sheet may look better.
    2. inventory has increased to 170 mil by 5.6%.
    revenue is down and inventory is up.
    is that dangerous in this ever-changing sports clothing( maybe not fashion yet) bussiness? i have seen plenty 50-80% off sale in macys and dillards just trying to clear the current year's inventory.
    so, sale is down and slow. does inventory still worth that much?
    3. i have to agree the strongest product in colm is winter and skiing clothes. what if less people will go skiing in this economy, and what if (very likely) we are getting a warmer than usual winter?
    little guy like me, i am going to sell my 200 shares tomorrow.
    maybe little guy like me should not invest or buy mutual fund (putnam fund) at all, if i can get rich by buy and hold, the other half investors should not be call " the professionals".
    i read a lot analyst's report, but i am getting more confused and losing more by reading it!

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    • It is time to sell your shares and invest in something you understand. Inventory build up now is because we are heading into the company's busy season. Why are rev. down since last Sept? They always are down after the 4th quarter once again because that is the busy season.
      This excerpt from the last earnings report.
      "..For the six months ended 6/30/02, revenues rose 3% to $267.5 million. Net income increased 10% to $16.5 million.."
      You need to compare for the same periods in the prior year.
      This company is healthy, growth is not booming but OK. I am looking for low 40's as we get closer to year end to cash out some nice profits. Downside is minimal because this company is on solid financial footing.

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