Look this is the old Van full of ideas- This is great.
#172 Jun 17, 2020
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Hi Stoney.
They have an Ollies in Waterbury and Manchester CT. There's 21 in NY, and 6 in Jersey. Tap in your zip code on their website.
They do sell camping and lawn and garden stuff. They're pretty cool stores really. Great place to buy books. Incredible book selection.
The stock is pricey, but there's several reasons. I'll get to that later.
Now your thesis on camping, here's my opinion Stoney. People who decide that because of Covid, camping will now be their family thing to do... those people are folks of modest means at a minimum. People like that who have heretofore never ventured into a realm such as camping (i hate it btw...)... they do research. Tents, gear, whatever. They use the internet. And people like that, they're gonna use AMZN, and rightly so. Price compare most items on AMZN vs Dicks, there's no compare. Unless it is in fact items that are price controlled by the manufacturer. Like Yeti I suppose, or other top brands of various sporting goods. Anything DKS sells, AMZN sells, and AMZN has all the cheap knock-offs that in many cases.. are apples to apples.
DKS stores are huge and expensive af. Always located in the highest priced retail sections of any major city. I mean that's good, but the costs... and the taxes. That also limits growth. By comparison, Ollies always opens up stores in decent areas, but in strip centers with vacancies. Ollies is a "destination store", ie people specifically head out of their hovels to grace one. Renovation costs per sqf are minimal. Their stores are well laid out, but they don't spend a lot on fluff. These are not Target Stores lol. This is a huge component to their growth story. The stores don't have to be pretty, its what's in them that matters. Name brand stuff at 60% off.
They've buried Piglots... $BIG... in every market they've entered. BIG has over 1600 stores... Ollies has only 360 in 25 states. Growth potential is huge. Same store sales continue to increase also. That's the reason they are so pricey.
All things being equal stoney... imo.... instead of buying your wife some Dicks for the anniversary, I say go with Ollies. DKS is overpriced, its a mature model imo. It should not command that PE. Ollies has huge growth ahead, and if they do load up on quality inventory due to so many other companies shutting down or just dumping inventory for cashflow, then Ollie's organic growth and same store sales should reach new highs.
OLLI- $96.50
DKS- $41.50
Lets see what happens going forward. Note, ollies had a nice bounce off of $95 today, but there's a little gap around $92. That $95 bounce today might be a floor going forward... assuming the broader tide stays above 2900 S&P.
Where did that man go?
OLLI- $71 currently
DKS- $83 <---------------- HELLO! I can't remember when Dick was $41
#172 Jun 17, 2020
More...
Hi Stoney.
They have an Ollies in Waterbury and Manchester CT. There's 21 in NY, and 6 in Jersey. Tap in your zip code on their website.
They do sell camping and lawn and garden stuff. They're pretty cool stores really. Great place to buy books. Incredible book selection.
The stock is pricey, but there's several reasons. I'll get to that later.
Now your thesis on camping, here's my opinion Stoney. People who decide that because of Covid, camping will now be their family thing to do... those people are folks of modest means at a minimum. People like that who have heretofore never ventured into a realm such as camping (i hate it btw...)... they do research. Tents, gear, whatever. They use the internet. And people like that, they're gonna use AMZN, and rightly so. Price compare most items on AMZN vs Dicks, there's no compare. Unless it is in fact items that are price controlled by the manufacturer. Like Yeti I suppose, or other top brands of various sporting goods. Anything DKS sells, AMZN sells, and AMZN has all the cheap knock-offs that in many cases.. are apples to apples.
DKS stores are huge and expensive af. Always located in the highest priced retail sections of any major city. I mean that's good, but the costs... and the taxes. That also limits growth. By comparison, Ollies always opens up stores in decent areas, but in strip centers with vacancies. Ollies is a "destination store", ie people specifically head out of their hovels to grace one. Renovation costs per sqf are minimal. Their stores are well laid out, but they don't spend a lot on fluff. These are not Target Stores lol. This is a huge component to their growth story. The stores don't have to be pretty, its what's in them that matters. Name brand stuff at 60% off.
They've buried Piglots... $BIG... in every market they've entered. BIG has over 1600 stores... Ollies has only 360 in 25 states. Growth potential is huge. Same store sales continue to increase also. That's the reason they are so pricey.
All things being equal stoney... imo.... instead of buying your wife some Dicks for the anniversary, I say go with Ollies. DKS is overpriced, its a mature model imo. It should not command that PE. Ollies has huge growth ahead, and if they do load up on quality inventory due to so many other companies shutting down or just dumping inventory for cashflow, then Ollie's organic growth and same store sales should reach new highs.
OLLI- $96.50
DKS- $41.50
Lets see what happens going forward. Note, ollies had a nice bounce off of $95 today, but there's a little gap around $92. That $95 bounce today might be a floor going forward... assuming the broader tide stays above 2900 S&P.
Where did that man go?
OLLI- $71 currently
DKS- $83 <---------------- HELLO! I can't remember when Dick was $41
