Columbia Sportswear Company (COLM)

MichaelinWA (67.42) Submitted: 7/21/08 2:04 AM : Start Price: $38.11 COLM Score: 24.32

Here is why I think this stock is going to do well. First, this is a well-known brand that needs some work on image, which the company is addressing. I walked into a sporting goods store the other day and the CSC display was eye-catching, and I normally don't take notice of such things. This is a mostly family owned company that is responding to it's need to bolster its image, and I believe they will be successful. This company owns several known brands, including Mountain Hardwear which put it in several segments of the outdoor wear market, ranging from sort of outdoor wear image to hard core, respected mountaineering apparel. They are also starting to open stores in key markets (Seattle and Chicago) to increase their market profile.

The company has had a slow recent quarter, but I think this is partly seasonal. Their increased presence in the outdoor footwear market is likely to help balance revenue in the future. Overall, I think the financial condition of the company is better than the price would lead one to believe, including the fact that they have little debt to speak of.

While the apparel industry is highly competitive, this company operates in a segment is is partly driven by image. Not surprisingly, their margins are reasonably good. Also, their presence in footwear and certain outdoor gear segments will help balance seasonality going forward.

Finally, the valuation of this stock makes it attractive. Even without rapid revenue increases, it's a buy

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