VOLCOM
Here is another company I like now and would buy at current price: VOLCOM (VLCM)
Volcom is a designer, marketer and distributor of young men's and women's clothing, accessories and related products. The Company's clothing, which includes t-shirts, fleece, bottoms, tops, jackets, boardshorts, denim and outerwear, combines fashion, functionality and athletic performance. During the year ended December 31, 2006, the Company launched new product extensions to complement its product offerings. These new product extensions include a complete line of sandals and slip-on footwear, branded Creedlers; a complete collection of kids clothing for young boys ages 4 to 7 years, and a girl’s swimwear line. The Creedlers and kids line began shipping in December 2006. The Company has four primary product categories: mens, girls, boys and snow.
Other than the underlying strong financials it posseses -- good returns on invested capital, return on equity and return on assets, low debt etc. It also has a shareholder friendly management. And the snow division is poised to grow as the season comes around. Volcom is also positioning itself when with younger crowds and has a loyal following, but we also know how fickle this demographic can be.
Going forward, I expect Volcom to be trading at around $59-$60 in 3 years, giving a return of about 30% annually from the current $25/share price.
That is factoring in a slight drop in profit margins to about 13% from the current 16% due to increased competition. I also expect share dilution of about 2%.
The current price allows us enough risk margin to invest. Just remember, this can be a volatile stock, be ready for ups and downs and when it looks like it's shot up too far, take some profit.
Do your own research, get to know the company, but I like what I see.
Here is another company I like now and would buy at current price: VOLCOM (VLCM)
Volcom is a designer, marketer and distributor of young men's and women's clothing, accessories and related products. The Company's clothing, which includes t-shirts, fleece, bottoms, tops, jackets, boardshorts, denim and outerwear, combines fashion, functionality and athletic performance. During the year ended December 31, 2006, the Company launched new product extensions to complement its product offerings. These new product extensions include a complete line of sandals and slip-on footwear, branded Creedlers; a complete collection of kids clothing for young boys ages 4 to 7 years, and a girl’s swimwear line. The Creedlers and kids line began shipping in December 2006. The Company has four primary product categories: mens, girls, boys and snow.
Other than the underlying strong financials it posseses -- good returns on invested capital, return on equity and return on assets, low debt etc. It also has a shareholder friendly management. And the snow division is poised to grow as the season comes around. Volcom is also positioning itself when with younger crowds and has a loyal following, but we also know how fickle this demographic can be.
Going forward, I expect Volcom to be trading at around $59-$60 in 3 years, giving a return of about 30% annually from the current $25/share price.
That is factoring in a slight drop in profit margins to about 13% from the current 16% due to increased competition. I also expect share dilution of about 2%.
The current price allows us enough risk margin to invest. Just remember, this can be a volatile stock, be ready for ups and downs and when it looks like it's shot up too far, take some profit.
Do your own research, get to know the company, but I like what I see.
posted by Shegun at
3:19 PM
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