Best Stocks for 2008: Value shopping at The Buckle (BKE)

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"My 'home run' speculation for 2008 is The Buckle (NYSE: BKE), a retailer of medium- to better-priced casual apparel, footwear and accessories for fashion-conscious young men and women," says value investor Charles Mizrahi, editor of Hidden Values Alert.

"The company focuses on personal service, including free alterations, free gift-wrapping,easy layaways, the Buckle private-label credit card and a frequent shopper program. The Buckle operates 350 retail stores in 38 states. Most stores are located in regional, high-traffic shopping malls and lifestyle centers.

"The balance sheet is strong with $157 million in cash and current liabilities of only $56 million. Net profit margin is 11.5%, in line with previous years. The company has no long-term debt, and management and directors own 56.1% of outstanding shares.

"BKE is a good company, and a price of $32 or less per share represents very good value. If BKE can grow earnings at 11% per annum and maintain a P/E of 15, the stock will handsomely reward investors in the next five years."