Gander Mountain Company (GMTN)

raycfong77 (< 20) Submitted: 5/31/08 11:03 PM : Start Price: $4.18 GMTN Score: -8.11

1) Salesman in hunting for southern stores is outstanding. They know guns, bows, ATV's, hunting, etc. better than best buys techs know TVs and Computers. I personally spend thousands of dollars here because of the great service, variety (and special order), and price.

2) They are still expanding and have much room for growth. Few stores in the midwest and none yet in western states. They pick good locations and blow away the competition in the area.

3) Insider buying has increased significantly, indicating excellent value and potential turnaround in performance.

4) Focus on a niche market that blows away Academy, Dick's, or Sports Authority for product selection and pricing in hunting,fishing,and firearms.

On the downside, Gander needs better management of their stores to ensure they are making good margins and staffing is adequate. Sometimes, pricing is so good that I swear they have to be losing money on the sale. And in fact, they have been losing money in the past couple of quarters, but also remember more stores are coming up and it takes time for the new stores to make money.

The wait for service can be silly at times because of other people that can't stop asking questions. Adequate staffing and efficient customer turnover needs some work... Some fundamental changes need to be made to improve reliable long term profits (Best Buy-like).

At this P/S, it is difficult to not buy this for a long term hold because I see more upside than down at this point. If management figures this out, then it will be up up and away!

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