Sunday Funday: Cabela's

Retail remains a troubling sector, leaving many investors stumped when attempting to pick the best-in-breed company. The key to success in retail has always been to build a following that can not be shaken by economic conditions, by creating a cult like following of shoppers that refuse to take their money elsewhere. Cabelas undoubtedly has a set of hardcore followers, both online and in the retail store setting. By being the premiere outdoor outfitter they have found a unique niche and by continually providing for their specialized set of followers, they have seen enormous success.

What I love most about Cabela's is unquestionably their room for growth. Investors do not have access to many retailers that have as much room to grow as Cabela's. Compare them to a giant like Dick's Sporting Goods, though these two entities serve somewhat of a different populous, the store totals differ substantially. For example Dick's Sporting Goods have almost 500 stores while Cabela's boasts almost 40. From my point of view this can be taken as a plus with huge potential for growth. Though Dick's serves a wider range of sporting enthusiast Cabela's has the distinctive retail offerings that Dick's just cannot compete with. Therefore, both these entities can exist in the same market, suggesting that Cabela's could grow their reach by hundreds of stores.

The way in which Cabela's played the recent economic turmoil was by the playbook. When times were tough they adjusted both margins and ad revenues accordingly, looking after their core consumer. As times improve, which they have as of late, they are adjusting margins accordingly and spending more on advertisements to bring in new customers. The financial arm of this retail giant was once a burden, but as we see the populous better manage their credit card debt, this element of the business will only set to strengthen.

With Cabela's quality offering of outdoor goods, demand for their products, and room to go, this may just be one of the better retail plays for the future.

What is Sunday Funday?

Sunday Funday: Garmin

In the spirit of this hot southern summer weekend one cannot help think about being out on the water. One of the necessities for any boater comes in the form of a GPS. Even though many see Garmin as a dead company, those fools overlook the potential of the many other aspects of their company. Garmin does not merely make automobile GPS, though this is a major portion of their earnings, around 50% to be exact. The Garmin earnings sheet also consist of outdoor, fitness, marine, and aviation.

I see the most potential in both the avenues of marine and aviation for one simple reason, potential. Both these portions of the Garmin company are geared up to make moves. These are both discretionary spending items, no question, just like automobile GPS systems. Though, automobile GPS are a dying breed being replaced by the boatload of smartphones being sold. When it comes to boating and flying GPS are not an accessory but rather a necessity that will no time in the near future be replaced. As we see Americans go back aggressively to spending on high end pastimes, such as marine and aviation, Garmin will set to benefit.

When looking at Garmin one cannot overlook the fact that they have held up nicely in the lackluster automobile GPS market. With the potential for growth in many other aspects of their company they look like an overall great company that was once thought to be the next RIMM. An example of their commitment to the future can be found in their new product like the Garmin Swim, a device designed for training swimmers to track their workouts and drills in real time. Whichever way you look at Garmin they are compensating for their weakness in automotive and handling the challenges of the current economic situations well.

What is Sunday Funday?

Sunday Funday: Dollar General

Dollar General has succeded in becoming a power source of its own. It was initially thought that no one could compete with the giant that is Walmart, but as we have seen over the past few years, the size of Walmart can actually be used against it. Dollar General has succeeded by combining the power of cheap with perfection in square footage. While Walmart has many employees running around being completely useless, Dollar General has just a few employees racking in huge profits.

These saving stores have had a great run over the depths of the recession. I am here today to argue that even as fuel prices go down and the economy looks better, these stores will continue to excel. In particular, Dollar General, because it has succeeded in stealing revenues and customers from the bigger discount stores like Walmart. Instead of going to Walmart or Target to pick up a few random needs, Americans are entering their dollar stores like Dollar General. This movement may be due to ease of use or avoidance of the mania in the big price savers, but either way it bodes well for Dollar General. Not only that, but with an expanding landscape of stores and a more competitive line of merchandise their is just no stopping the DG.

The last and final fact that pushes Dollar General to the top of my radar, deals with the change in Americans habits. Americans will stop at nothing to save a dollar. Walk through your daily routine and you will see a mass amount of individuals pinching pennies everywhere. This behavior has stemmed from the tough times that were prevalent for the past few years and still encompass our world. These cost saving behaviors will stay with the consumer for quite some time and penny saving stores like Dollar General will continue to excel in that type of environment. So no matter how you feel about the future of our economy or the global economy, stores that sell bargains will be packed with everyone from the low class to the upper.

What is Sunday Funday?


(though DG may not be very fun oriented, I am somehow convinced by the woman in my life to do a ridiculous amount of shopping on the weekends)

Sunday Funday: Mother's Day

I usually like to use Sunday Funday as a way to highlight a stock that may not be on every investors radar. This Sunday I am going to switch it up, and rather, make a suggestion for the time you would spend researching said stock. I suggest taking that time you would spend slaving away in front of the computer and use it towards family time. We all work very hard to achieve financial success. On Sundays like this, one must step back and realize why we desire that financial success. We desire this financial success so that we can support those around us, so that we can spend less time working and more time with our family. It may sound cliche, but take a moment to spend some time with family today. I am taking a break from my research to do the same, because at the end of the day family is all you have.

What is Sunday Funday?

Sunday Funday: Smith & Wesson Holding Corporation

One of the oldest traditions of southerners in America, is the one of shooting firearms. I like to take advantage of this right on my weekends, so I see it fitting to take a look at Smith & Wesson for this installment of Sunday Funday. It seems in this time of uncertainty more and more Americans are taking advantage of their right to bear arms. From the looks of it Smith & Wesson will likely benefit. What separates S&W from the competition is not just the quality of there merchandise, but one specific line of handguns. For those not familiar with the handgun market there is a large demand for small, accurate, and easy to use conceal carry class of handguns. S&W has found the perfect mix of firearm essentials in its line of Bodyguard handguns. The Bodyguard 360 has been sold out in many a retail locations and the demand remains high.

I am not uneducated enough to suggest that one product will change the game for a company. What the above bodyguard example lends itself to suggest is that S&W is doing something right, very right. The demand for firearms is high and the choices are various, which in turn means creating a product that sells off the shelves is quite difficult. S&W has created a product that appeases the masses and it will continue to make one of kind products. Looking below at their share price, they are obviously doing something right. So in the spirit of Sunday Funday, let's go shooting.

SWHC 1 year

What is Sunday Funday?

Sunday Funday: Lions Gate

Investors and movie goers alike seemed hungry for the first installment of The Hunger Games. I had many a women fill my ears about the hype for almost a year. The reviews on the rating sites were decent to good, the personal reviews I have heard were quite lackluster. Though the fact of the matter is that the hype will only grow in anticipation for the following movies. So looking at LGF, it is a great candidate for Sunday Funday.

LGF last 6 months

With the huge potential to have a blockbuster brand in the hunger games and the possibility of other big hits for the rest of the year, LGF seems to be on the right track. Most of the above story you have heard and see the massive upside potential. Though their is always one point many fail to bring up, the streaming qualities of an enterprise like this. Nowadays there are so many ways in which movie fans can access content. Lions Gate has found ways to monetize all of these above and beyond what is normally expected. For example look at there Mad Men deal with Netflix. That is just a simple example, but content will be monetized more and more in the coming years. This monetization will LGF will make a killing.

So sit down on this Sunday Funday and enjoy a quality LGF movie and keep an eye on that stock.

Sunday Funday: Boston Beer Co.

What better way to start my installment of Sunday Funday (click here to figure out what Sunday Funday) is then to talk about one of the most popular beers on the market. Samuel Adams, seen by many as a one of a kind beer, is in fact a one of a kind company. From the investing standpoint we often ask ourselves, what makes a good company? The answer is as simple as having a good product and Boston Beer Co. has just that. They don't just make a good product, but their brand loyalty is quite extraordinary. It may be that they take pride in their product or it may be that they just make a damn good beer, either way SAM is doing something right.

In the down economics time as of late, it seems that many turn to alcohol as a cheap and fun form of entertainment. While Americans are forced to cut back in many aspects of their lives, they also splurge in a specific few. When it comes to beer buying on Saturday night even the cheapest of us will drop an extra $5 to get a better beer, and it looks to be that the beer of choice is Samuel Adams. The higher P/E ratio compared to competitors says it all, investors are willing to pay more for a better company.  I can also sleep safe at night knowing that some one passionate like Jim Koch is standing behind his product. With great earnings, great brand loyalty, and a damn good beer I would have a little Sunday Funday with SAM.

What Is Sunday Funday?

Capital Overlook strives to assist investors by taking a different perspective to the daily stream of news coming out of the financial sphere. Starting this Sunday and continuing forward here at Capital Overlook we will be donating this one day out of the week to looking at a specific stock. This stock will change on a weekly basis. The goal is to cover a company a lot of investors are not familiar with and something oriented with weekend fun. Hopefully this weekend read will give you an insightful look at a company you aren't familiar with and will help you profit from this new-found information. Sunday Funday takes the fun theme of the weekend and combines it with stock picking, to give you a competitive edge.