Friday, July 22, 2005

See You At The Finish Line

I did some searching tonight for new investments for the long-term port. After reading this week's S&P Outlook, I decided to take a closer look at Finish Line (FINL). The company is a mall-based retailer specializing in athletic/activewear and footwear. Recently, they diversified their goods with the acquisition of Man Alive, an up-and-coming mall-based retailer concentrating on hip-hop fashion. The numbers look alright, and the outlook seems promising.

The company sports a market cap just under $900MM, so it isn't large enough to have caught everyone's attention. While it is not unknown, the company is probably not yet on everyone's radar. That said, there is plenty of room for the company to grow. There are over 500 Finish Line stores scattered throughout the U.S. However, there are less than 40 Man Alive stores sprinkled in the midwest and eastern regions of the nation. The company believes that the Man Alive concept could eventually support hundreds of stores.

The current opinions of Wall Street analysts is neutral to negative; I did read the latest Goldman Sachs report on the company, and I am willing to take on the risk. Sometimes you have to establish your position when the company is out of favor. Typically, long-term profits are not made buying with the crowd. Assuming the stock does not move wildly to the upside, I will be a buyer tomorrow.

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