Competition is Good For Us – The Customers

As I am sure you are aware, Bass Pro Shops owns Cabelas.  You should be aware that they are a privately held company.  With just Bass Pro and Cabelas they control a huge share of the market.  If you are up on these things you may be aware that regulator grumbling probably prevented the takeover of Sportsmen’s Warehouse by Bass Pro a short while back.  Thank goodness.

I got to thinking about this and decided I wanted to own some stock in Sportsmen’s Warehouse.  I don’t think it will make me rich.  In fact its pretty low right now.  Prior to the takeover talks it was averaging about $5 per share.  When takeover talks started it jumped up to $18.  It stayed there until the takeover fell apart.  Right now its running around $4.  It’s low enough to buy a few hundred shares, so we did.  I could play it short term and make a few dollars, but that isn’t why we bought shares.  I want to support competition in the industry.

I’m not suggesting you do any such thing.  I have no inside information (which would be illegal insider trading).  I have no idea if it will be a good investment financially.  I just want to NOT see BASSABELLAS EAT the industry.  Just think about the long term health of the industry and consider in anything you care about maybe do some investing “protectively.”

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