Have you noticed that it has been a little warmer than usual these past few weeks? My guess is that you have, and that your winter coat is still trapped behind a layer of long-sleeve shirts. While I certainly welcome the warmer weather, I would not be too keen on having the likes of Columbia Sportswear (NASDAQ:COLM) in my portfolio.
It is true that this winter has been warmer than those of years past. As I write this article the outside temperature is 64 degrees Fahrenheit -- to give you some geographic whereabouts, I live in the Northeast. A year ago today the temperature was 47 degrees Fahrenheit (it is amazing what you can find on the internet). Snowstorms hit with an unrelenting cadence last year, and two years ago Halloween was cancelled in nearby towns because there was a huge blizzard. My point is that it is not as cold as usual. I do not try to pass as an environmentalist, but there is a pretty promising reason as to why this winter has been, and may remain, warmer. It's called El Niño, and no, it is not a wrestler. El Niño is the name used to describe an environmental event that occurs every few years. In short, it refers to a complex of surface temperature changes in the Pacific Ocean, and these can create warmer weather whose effects can be felt for up to a year. Back to Columbia. It is hard to bet against a company that just grew earnings by 37.6% year-over-year and delivered EPS of $1.28 vs. the $1.07 estimate. Read the rest on Seeking Alpha for free, right now.
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