I'm trying to assess if I made a mistake. What do you think?
This is strictly IMO, FWIW and all that rot...
My feeling -- the company has embarked on a series of changes that will only bear fruit over time. In particular, the do-it-yourself market didn't quite work as expected. So, they are focusing more on the do-it-for-you segment now (Actually, I think one of the reasons why the DIY segment didn't take off is the "wealth effect" caused by a booming stock-market!).
The company's finances are in good shape (rated A+ by S&P), the dividend is intact and is likely to be increased again, earnings might be flat for now, but are bound to increase sooner or later, and even though same-store sales are not increasing as much as one would wish, overall sales are increasing, which is a good sign.
My expectation with any stock is a modest doubling in 5 years i.e. about 15% annualized appreciation. So, I don't mind if this one hibernates for even 3 years before taking off. Meanwhile, I have the assurance that tomorrow, if the market loses 50%, this one might not go down as much and even if it were to go down because of a sell-off, it is more likely to regain ground faster than the market will.
Besides, I believe (and I am sure you do too) that one should buy stocks before they go up, not after! Overall, I am pretty confident and positive about this one. Of course, I don't usually look to see at what price PBY closed today. I realize that this one needs time and patience.
Best wishes,
Dipy. |
