Saturday, February 18, 2012

The Buckle (BKE) 2012 Review


The Buckle (BKE) is a retailer of medium to high priced casual apparel (denims, casual tops, sweaters, slacks, outerwear, accessories and shoes) for fashion conscious young men and women through nearly 428 stores in 42 states.

Over the last five years, BKE has grown profits at a 24% pace and dividends from $.09 a share to $.80 while earning a 20-30% return on equity. The company weathered the recent down turn better than most and should continue to grow at an above average pace as a result of:

(1) geographic expansion,

(2) a wide selection of on trend styles. More than one half of BKE’s are exclusive Buckle brands.

(3) price points. Their combination of unique styles, fits and silhouettes appeal to a wide variety of customer and allow the company to charge premium prices,

(4) an ongoing stock buy back program.

Negatives:

(1) highly competitive industry,

(2) any slowdown in the economy will impact consumer spending.

BKE is rated A by Value Line, has no debt and its stock yields 1.9%.

Statistical Summary

Stock Yield Dividend Growth Rate Payout Ratio # Increases Since 2002
BKE 1.9% 11% 24% 6*
IND 1.2 10 21 NA

Debt/Equity ROE EPS Down Since 2002 Net Margin Value Line Rating
BKE 0% 30% 0 14% A
IND 7 13 NA 5 NA

*BKE has only paid a dividend for nine years

Chart

Note: BKE stock made good progress off its December 2008 low, surpassing the down trend off the September 2008 high (red line) and the November 2008 trading high (green line). Long term the stock is in an up trend (straight blue lines). Intermediate term it is also in an up trend (purple lines). The wiggly blue lines are Bollinger Bands. The Aggressive Growth Portfolio does not own BKE. It did Buy the stock in December 2008 but Sold the entire position in early 2010. The upper boundary of its Buy Value Range is $18; the lower boundary of its Sell Half Range is $45.




http://finance.yahoo.com/q?s=BKE


Steve Cook received his education in investments from Harvard, where he earned an MBA, New York University, where he did post graduate work in economics and financial analysis and the CFA Institute, where he earned the Chartered Financial Analysts designation in 1973. His 40 years of investment experience includes institutional portfolio management at Scudder, Stevens and Clark and Bear Stearns. Steve's goal at Strategic Stock Investments is to help other investors build wealth and benefit from the investing lessons he learned the hard way.