Gander Mountain Company (GMTN)

gopirque (< 20) Submitted: 7/22/07 4:39 PM : Start Price: $11.86 GMTN Score: -41.50

Well, I'm going to make a gutsy call.

1) Gander Mountain's financials aren't really the best. They've reduced long-term debt but are still struggling with their current liabilities.

2) Bass Pro and Cabelas do have the majority of the market share, and are mega players with customer service, store features, and catalog orders.

3) Gander Mountain has been out of the loop for over 10 years, can they really come back?

**I think they can. I remember 10 years ago when we received our last Gander Mtn catalog, it was a sad day. Why? Because Cabelas and Bass Pro always had higher prices. Sure, we enjoyed looking at the other catalogs, but we bought from Gander Mtn.
Also, Gander Mtn has pretty good locations for its current stores. If they focus on expanding the same size and style and don't try to compete with Cabelas, then they will be able to capitalize on Cabelas weakness. Think about it: people visit these megastores from across the country, only to return and not have something close to them...enter Gander Mtn with their smaller but functional retail stores and Gander Mtn is back in the game.
The right to sell from catalog and the web is huge, and if Cabelas doesn't appeal, I see Gander Mtn fitting back in nicely. By-the-way, with this kind of potential to hurt the Big 2, can anyone spell a-c-q-u-i-s-i-t-i-o-n (it took me 3 tries to do that).

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