back to school season

[Alex Kuvshinov]

Hello everybody,

I am a young investor in my early learning stage about investing and markets in general. I would like to know what industries/companies should I look at as the "back-to-school" season begins. Can anybody recommend some names that tend to perform well during this cycle?
I would appreciate your suggestions.
Alex.

[deepinwonder]

You might consider Starbucks. They just reported an excellent quarter, same store sales up and still expanding world wide. The stock just started going up, after they reported, so watch for a dip.

[Alex Kuvshinov]

Deepinwonder,

what do you think about retailers such as Office Depo, Gap, American Eagle Outfitters, Best Buy, Wal-Mart. Do they usually rise as the back-to-school season begins?

[axb8000]

SHLD. It's a Cramer favorite and with Kmart & Sears I'm sure the back to school frenzy will hit those stores too.

Target is a good retailer also.

[Alex Kuvshinov]

I heard that investors don't like Best Buy at the moment. Is there a specific reason for that ?

[deepinwonder]

I mentioned Starbucks because college kids like it. I haven't been buying retail, since I sold my Tiffany stock. You can look at their one year charts and earnings to see what they did last fall and how they've been doing, since. I've seen Urban Outfitters recommended on Cramer, as well as other analysts upgrading it, etc. Not Gap or Office Depot.

[axb8000]

Best Buy got a downgrade. I think because of it's qrtrly report (but I'm not sure). Cramer just recently said that this is a GOOD time to jump into BBY because the downgrades aren't called for and the stock took a good dip.

[Alex Kuvshinov]

Deepinwonder,
People of different ages like Starbucks. Is Starbucks big on college campuses?

[Alex Kuvshinov]

can the cooler weather during the fall and winter months do something with Starbuck's stock price appreciation? do you think investors reason this way?

[deepinwonder]

Starbucks' marketing approach is geared toward the younger crowd by offering music downloads, as well as wireless internet connections for their laptops in some of the stores. They also signed a contract with XMRadio for a Starbucks music channel and have locations in college towns.

Check their chart and earnings from last fall and look up news items that are related to their current situation, earnings from the last quarter, and future plans for growth.

Cramer has also been recommending a drive in burger joint called Sonic, who is on a major expansion plan. I don't own either of these stocks, they are just suggestions to keep an eye on. :)

[Alex Kuvshinov]

Thank you Deepinwonder.

do you think such relatively growing companies as Starbucks and Sonic will be affected by the next short-term interest rate increase (if therewill be one)?

[uth]

Companies that do well in one particular season (ie back to school) often don't rise simply because of back to school sales (unless they're exceptional). Seasonal things like that are often priced into the stock.

I've had BBY for awhile, it's done well for me.

[BillEvans]

[quote="deepinwonder"]You might consider Starbucks. [quote]

:lol:

Is this because all the late night studying before finals for back to school?