November 26, 2007


Outdoor gear superstore concepts like Bass Pro Shops and Cabela's are sorely misunderstood. The large boxes appear overly lavish, complete with themed camping terrain, large aquarium tanks, and museum-like wildlife displays. Shopping is an adventure, yet the chains are positioned reasonably well for a tightfisted future because they provide a lot of entertainment bang in pursuit of the buck.

Sales continue to grow at Cabela's, though earnings dipped slightly this past quarter. With the stock now trading at just 10 times next year's analyst profit target of $1.62 per share in earnings, Cabela's is cheap. It's now better looking prey than some of its snapshot-ready critter replicas.

It is close to its 52 week low.

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