Zumiez (ZUMZ) the next Dick's?

ramer mentioned Zumiez on Friday's show as possibly being the next Dick's. After doing some additional research, I do not think that they could compete with a Dick's because their focus is so narrow. I did however look at the analyst average EPS for 2006, and if the stock can hold the current P/E ratio, it should top $51.00 by the end of 2006.

The growth seems solid and this stock looks like it has a lot of potential. What does everyone else think?

General sporting goods stores usually can't compete with a place like this, when it comes to snow and skateboarding equipment. Those are two ever increasingly popular sports among young people. This store reported increased sales of 30% and same store sales are up 10%. Sounds more like Starbucks than Dick's to me. Think it could be a good call, especially this time of year. In our family, sporting gear and clothing are always preferred over tech toys (cameras being the exception) for gifts.

We are skiers and windsurfers, so wouldn't shop here. In that respect, I do see limitations, but we wouldn't shop with Dick's, either, they have a crummy selection or don't carry the gear we need at all.

Except for the expansion factor... neither one can compete with SBUX in that area and there are only so many places in the country a store that sells snowboards would do well, so their options would be limited, that's true.

Whoa... check the charts on this stock today! It seems as if a BUY from cramer for a small stock such as this one really means increases in volume. At 9:40 this stock had already doubled its average daily volume, and its up $1.70, or nearly 5% so far today.

News came out this morning that they just priced a new stock offering, could cause shares to drop. I have had trouble in stocks going through that, they just kept going down in price due to the valuation being diluted. That doesn't happen all the time, but watch this one closely if you bought it.

Neither am I, especially not now. Target market is too narrow and now this. I wonder if Cramer knew about the new offering coming up. Hmmm....