Sports Supply Group Focused on the Game - Barron's

Annotated article summary from this weekend's Barron's. Receive all our Barron's summaries by signing up here:

The Trader by Kopin Tan

Summary: Collegiate Pacific (BOO) changed its name Sunday to Sport Supply Group, now (RBI) to mark its focus on sports equipment supplies like baseball bats and goal posts to schools, teams, catalogs, websites and in-house sales. Analysts expect a $0.72/share EPS in fiscal 2008, up from $0.46 in 2007 and $0.29 in 2006 as the sports supply market grows steadily. Shares, trading at 13.5 P/E, rose 6% to $9.71 on Friday, but are 10% lower this year from a bumpy merger integration. Yet RBI's new technology platform, streamlined catalog and manufacturing operations and growing sales are behind Carlson Capital's 14% stake buildup, and Oppenheimer's Christopher Jones $1/share EPS projection for fiscal 2009. Barron's Bottom Line: Bulls expect good news, possibly even a buyout.

Related Links: Sports Supply Group

BOO/RBI 1-yr. chart: