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Dick's Sporting Goods Inc. Message Board

  • topa12389 topa12389 Apr 9, 2011 10:11 AM Flag


    I think DKS is positioned for a significant decrease in its stock price due to the following reasons; 1) stock is near all-time high and looks like it is rolling over from a technical perspective; 2) the stock seems significantly overvalued on virtually every metric valued at a P/E of about 28x; 3) the company is facing significant compedative pressure from the likes of Walmart and Target & I would not want to face off against those two companies; and 4) there is significant commodity cost inflation that could dramatically lower the company's margins and cause EPS estimates to move down significantly.

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    • Topa - If you're a short seller, then I can't give you any advice cuz I don't know anything about shorting. But if you do any long term investing you should listen to what Lyons and Mawchek said.

      DKS appears to one of those growth stories that can be very profitable over a 3-10+ year period. I know that buying and holding doesn't get much press nowadays, but take it from some of us oldtimers - that strategy can be very lucrative.

      Good luck whatever way you trade. I will admit that traders and shorts can make money with DKS. But 5-10 years from now I expect my DKS holdings to be a great investment.

      PS: Buy and hold doesn't always mean buy and forget. I stay on top of each investment as best I can. Some I sell [or slowly sell out of] and some I average in more or just hold.

    • I agree DKS is richly priced on a P/E and PPE basis. It's gotten there through outstanding operational performance. Also, management has commented input prices may have some detrimental effect on margins longer term. Note they have also said suppliers are expected to work with them on this issue.

      Your comment on competition from WalMart and Target shows me you know little about Dick's and its competition. Your tired assertion has been discredited many times over the years and is little more than a canned assumption. WalMart and Target serve very different customers, carry far smaller assortments and offer much lower price-point merchandise than Dick's. Dick's, as they say, is an authentic sporting goods retailer.


    • Disagree. Looks like a double from here.
      1.Rapid expassion plans:
      2.$400 million in cash to finace expansion without diluting stock.
      3.PEG = 1.25 = Great low number
      4.Price sales = 1. Great low number
      5 Institutional owernership = 105% = lot of mutual funds buyings.

50.265-0.425(-0.84%)12:18 PMEDT