Earlier this summer the Motley Fool took a look at investment opportunities in Nebraska. Apparently, only 18 public companies are based in the cornhusker state, the largest of which are familiar names to even the most casual investors: Berkshire Hathaway (NYSE: BRK.A), Union Pacific Corp. (NYSE: UNP), Conagra Foods Inc. (NYSE: CAG), and TD Ameritrade (NASDAQ: AMTD). But the Motley Fool also mentioned two smaller, less-familiar stocks: sporting goods retailer Cabela's Inc. (NYSE: CAB) and fashion retailer The Buckle Inc. (NYSE: BKE).
Sidney-based Cabela's was founded in 1961 and went public in 2004. Cabela's is considered a buy by the consensus of analysts surveyed by Thomson Financial, but a closer look shows that they are split between strong buy and hold. The share price reached a 52-week high of $28.80 in early August after Cabela's second quarter results beat Wall Street expectations. The price was $23.91at the close on Wednesday. The Motley Fool points to tough same-store sales and insider trading as reasons for Cabela's "sophomore slump." In other words, high expectations from the IPO have worn off and its time to consider buying. In addition, Motley Fool, like Consumer Reports before it, likes Cabela's VISA credit card. Cabela's was also recently included on S&P Small Cap 600 index, and it made the 2007 Forbes list of 100 best mid cap stocks. Cabela's will release third quarter results on November 1.
Based in Kearney, Nebraska, The Buckle has more than 300 stores in 38 states that feature fashions for tweens to twentysomethings. Buckle is also considered a buy by analysts surveyed by Thomson Financial. The share price closed at $39.20 on Wednesday, down from the 52-week high of $41.45 in June, but well above the 52-week low of $24.75 last October. The Buckle's recent marketing efforts have included partnerships with Jones Soda and Matchbox Twenty. The Buckle recently announced a dividend of 25 cents, a 25 percent increase. And it was revealed that the founder's son, Chairman Daniel Hirschfield, sold 74,600 common shares on Tuesday as part of a prearranged trading plan; he had sold another 51,800 shares in September, but he still owns nearly 50 percent of Buckle's common shares.
The Motley Fool article didn't take a look at Valmont Industries Inc. (NYSE: VMI), an Omaha-based metal fabricator that produces center pivot irrigation systems, towers, and other infrastructure support. But Valmont did make the 2007 Forbes list of 100 best mid cap stocks. Also, Valmont had a strong second quarter report, and announced a dividend of 10.5 cents per share. Though analysts surveyed by Thomson Financial consider Valmont a stock to hold, TheStreet.com considers it a buy, and recently listed it as a top five mid cap stock and a top five growth stock. Valmont reports third quarter results on October 17. The share price was $86.80 at the close on Wednesday.
I do not own shares of these stocks. As always, do your homework before investing.
See also: Investing in Oklahoma and Investing in Wisconsin.
Comfort Zone Investing: Survival of the fittest -- letting some banks fail
Three All-American stocks for portfolio fireworks
Michael Jackson fireworks, the workaholic
