quote from Maximilian Skinner in Ridley Scott's movie adaptation of Peter Mayle's book, "A Good Year".
Timing. The correction in the market has created a timing opportunity to pick up some really good stocks with great fundamentals at some very reasonable prices. I will talk about two of these stocks, one from California and one from Alabama.
Deckers Outdoor Corp. (Symbol DECK, $53.22) is a Goleta, California based designer and producer of footwear and accessories such as handbags and outerwear. Deckers has been effected negatively in the last quarter by their business in Europe. I guess when Europeans get sad they stop going out to buy their UGGs. Well, they should probably buy this stock and their UGG's and get happy again.
The 5 year sales growth at Deckers is 41.35%. The Greeks could learn something from this company. The 5 year earnings
growth is 40.11 %. Spain, Portugal listen up to what I'm saying.
The Timing part that Maximilian was talking about is the PEG ratio here of 0.87.
The stock has a Return on Equity of 25.38%. Although the stock is off 40.26% this year, it still has a 3 year return of 217.98%. I can see no other alternative except to purchase the stock and sit back and have a fine French Bordeaux and wait for your money.
Uncle Henry Skinner , "You'll come to see that a man learns nothing from Winning. The act of losing, However, can elicit great wisdom"
I think it is time to move on to Alabama, for our next stock with good fundamentals.
Hibbett Sports Inc. (Symbol HIBB,$ 54.94) based out of Birmingham, Alabama , operates sporting goods stores in small to mid-sized markets predominantly in the Southeast, Southwest, Mid-Atlantic and the Midwest.
This company has a one year Total Return of 40.91% and a 3 year Total Return of 207.79%. They don't care about Europe, because they have the Crimson Tide, of The University of Alabama. College Football country.
No Soccer here! HIBB, has five year earnings growth of 24.64%. The PEG ratio here (Price/Earnings to Growth ratio) is a very reasonable 1.20.
2012 earnings per share for HIBB are projected at $2.56 and for 2013 it is looking like $2.91 per share. Looks like a pretty solid investment.Sporting goods seem to be one of the items that make people happy and get them through hard times and good times.
So Freewilly says " Roll Tide, and Roll with the stock of Hibbett Sports"
Freewilly, signing off .............Good Bye.