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Volcom Inc. (VLCM) Business is Secure in Young American Hearts

Catering to the young is a double-edged sword. All business management is about future returns from present investments. It is not logical to do this for mature or older sections of society. Taking places in young minds can generate dividends for decades. However, stock investors crave for stability as well. We cannot deploy resources to build shares in fickle markets. Youth and fashion go together, but what if products and services in demand today go out of style tomorrow?

This small-capital member of the Apparel/Accessories Industry seems to offer the best of both worlds. It not only targets young America, but is adroit at re-filling retail shelves with versatile clothing that can meet tempestuous tastes.

The early-August 2008 stock price is $22.88. The Price to Earnings Ratio is just 15.59. The Beta is a staggering 2.13. It should be no wonder that institutions have cornered 62% of the stock. The stock offers more than profits. Everyone can study this corporation to see Strategic Marketing in action.

The management has done an exceptional job of creative clustering. It has turned the confounding demographic diversity of the United States into a large but homogenous segment for sustainable business advantage. The umbrella brand addresses young and active adults, encompassing all races and both sexes.

Execution discipline distinguishes the management team behind this stock, as much as their creative talents and planning know-how. The product range is broad, covering everything you may need from outer jackets and other things to keep harsh weather away, to the innermost clothe that sits next to skin. Products are easy to buy with prominent shelf-spaces in specialized stores and regular retail chains as well.

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