It isn't just about having the right equipment. There's timing and location and leverage. Seems Sports Chalet (SPCHA is having trouble with the later. From the LATimes article:With all of its stores in California, Nevada, Arizona and Utah, Sport Chalet "can hardly have been in a worse geographic location to weather the housing crisis," said Sean McGowan, an analyst at Needham & Co. "They're just right in the cross hairs."
Recession effects aside, Sport Chalet has made some missteps of its own. Analysts questioned the placement of several of the chain's latest locations, such as stores opened last year in Menifee, Calif., and Queen Creek, Ariz.
"Those are stores that were driven by the fact that there were a lot of new homes being built in that area," Mintz said. "And now that's the area where homes are standing empty and being foreclosed on."
More paintball and indoor flying model clubs coming soon.
9 comments:
Fortunately Bernanke now predicts the recession to end this year with the FIRST leg of recovery beginning in 2010. His predictions have been steadfast and consistent: always an end to the recession six months from the present.
Ok, so to totally hijack this thread (and keep the lovely lady on top all day... hmmm... girl on top.. OK, I'm back now)
Can some of the enlightened minds here explain to me some of the comments I've been reading about a "race to the bottom"?
Something about devaluation of currency? Is that really where you guys think we're going?
If so, is that so that our debt is cheaper and more manageable?
So I guess SPCHA is a zero?
A zero? There's value there it is over encumbered by debt and geographically disadvantaged but might make a sweet buy out for Dick's or similar looking for greater national share. 18¢ might be the right risk adjusted price. Call it a 1 out of 5 chance for a $1 buyout.
JVJ,
No, I didn't forget you.
Race to the bottom aka beggar thy neighbor is an attempt to preserve the domestic economy by devaluing your currency. If everyone does it there's no net effect so you have to do it first. The US is going to have a dollar crisis regardless for reasons of sustainable debt and the growing possibility of sub rosa default.
Can I have two of her... to go?
TWO? Two? Heck I doubt you could even keep from crossing your tips with just one. ;-)
I'm an excellent skier. :)
Speaking of sports retailers, does anyone find it as funny as I do that Dicks is buying Chicks?
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