Christine,
I lived in Austin for 4 years (during my glorious college days).
The concept is great, the stores are very clean and well managed, and they have a huge selection of products. However, they are trading at near their 52 week high. With a trailing P/E close to 40, it seems fairly valued at this time. What might happen is that entrepeneurs will copy the concept and start similiar niche stores which doesn't have the size of WFMI, but will offer more of a small local store ambience.
Other stocks I'm considering buying, but ONLY on dips:
HDI (Harley Davidson)- 2 year backlog of orders. A mid-life crisis haven.
GPS (Gap Stores)- Old Navy concept stores are gaining cacceptance and management is superb. One of few retailers doing well.
CC (Circuit City)- too pricey now, but wait and come back to this one. CarMax is starting to turn a profit (If you could buy a late model auto from a national dealer, w/ no haggling, wouldn't you?)- yes, they're being sued by OfficeMax for trademark infringement, but that'll be settled quietly. Hopefully, it'll drive the stock down 50%- hehehe. And next year, there should be huge demand for DVD's- digital video disk players.
DAL (Delta). Yes, another cyclical in a slowing economy. But their fleets are the newest and they have great management. (BTW, TWA has the oldest fleets).
I also have a friend (Works for Nieman Marcus) who suggested Abercrombie and Fitch when it spins off from the Limited. Another yuppie story.
I currently don't own any of these but will if there's a Big Correction. Since most of the stocks mentioned are cyclical, I would wait until next year when the recession arrives. They should be @ bargain basement prices then. Sort of preverse wishing stocks would fall. Oh well, life's tough. |
