Forzani Group 2

Today, I am reviewing this stock (TSX-FGL) to see if it currently is a good buy. The first thing to mention is that there has been insider buying lately. There was some selling when the stock was up over $18. However, buying started when the stock hit $13 and it has been continuing.

On the charts, if you look at this stock over the past month, it has done better than the TSX or the TSX Consumer Staples Index. If you look at the stock over year to date, 1, 3 and 5 years, it has done worse than these two indexes. It is only looking at this stock over a 10 year period when it has done better than these two indexes. The problem is that this stock has been very hard hit by the recent bear market.

No one expects this stock to earning as much this year (Jan 2009) as it did last year (Jan 2008), but improvement is expected for Jan 2010. People vary as to how much the EPS will go down this year. Both the Current Asset/Current Debt and the Asset/Debt Ratios have deteriorated in this new quarterly report. Both the Net Income and the Operational Cash Flow figures are negative for this new quarterly report.

The only recent bright spot is the insider buying. Analysts are giving this stock Strong Buy, Buy and Hold ratings, with an average of a Buy rating. As always, there are various opinions on this stock. Personally, I would like to see the next quarterly report before committing any money to this stock.

The Forzani Group is a retailer of sporting goods, offering an assortment of brand-name and private-brand products through stores under corporate and franchise banners. Their corporate banners include Sport Chek, Sport Mart, Coast Mountain Sports, National Sports, Athletes World and Hockey Experts. The franchise banners include Sports Experts, Intersport, Atmosphere, Nevada Bob’s Golf, Hockey Experts, Fitness Source, Pegasus, RnR, S3, Tech Shop and Econosports. Its web site is www.forzanigroup.com. See my spreadsheet at www.spbrunner.com/stocks/fgl.htm. I have re-uploaded my spreadsheet with the 2nd quarterly report figures.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.