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Friday, October 31, 2008

Will used buy and sell stores outperform regular retail?

If this article is right, then Winmark (WINA) stock should be up more. It's selling at $15. Surprisingly it has a very small float....only 5.5 million shares and the CEO John Morgan owns 1.44 million (26% ownership).

"Enter Morgan, who renamed it Winmark and focused on four franchises: Play It Again Sports, Once Upon A Child (kids' apparel), Music Go Round (used musical instruments), and Plato's Closet (which, like the other franchises, also sells some new items). Today, Winmark has 861 stores nationwide. ......

Sales at Plato's Closet outlets open more than a year were up 19.6% in August, vs. 1.7% for the industry as a whole. -Stock Article Link

Business is Booming for Winmark

"What is interesting is it's leasing business having built a company called Winthrop Resources Corp. from scratch and selling it many years ago for $330 million...

..The bigger story for us is that after his five-year non-compete agreement expired, Morgan has been building new leasing businesses within Winmark. One focuses primarily on leasing big-ticket IT equipment to small and medium-sized organizations, while the other is a smaller-ticket business-to-business franchise concept called Wirth Business Credit..."-Stock Article Link

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1 Comments:

Anonymous retire rich said...

nice article
great!
i wanna be a retire rich..
your blog is my inspiration

8:07 PM  

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