Gaming Escalade Could Gain You 20% By 2019

This week the portfolio I'm building (my Safari To Sweet Success portfolio) seeks a high-yield and growing stock in the consumer cyclical sector. 

The consumer cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Footwear, Gambling, Leisure, Lodging, Packaging, Personal Services, Restaurants, Rubber, Plastics, & Textiles, and all such consumer aimed enterprises.

Today I'm reviewing a Small-Cap International leisure industry corporation that manufactures and sells sporting goods.

The company's name is Escalade Incorporated. It's trading ticker symbol is ESCA.  

The company manufactures, imports, and distributes various sporting goods brands in basketball goals, archery, indoor and outdoor game recreation, and fitness products.

The company also provides play systems; fitness products; hockey and soccer game tables; darting products; and outdoor game products.

The company provides its products through sporting goods retailers, specialty dealers, online retailers, traditional department stores, and mass merchants. 

Escalade, Incorporated was founded in 1922 and is headquartered in Evansville, Indiana.

I use three key data points gauge the value of any dividend equity or fund like Escalade Incorporated (ESCA): 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest. 

No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money. 

ESCA Price

Escalade's price was $14.15 per share at yesterday's market close.  A year ago its price was $11.65 for a gain of $2.50 per share in the past year.  

Assuming Escalade's price will continue to trade in the range of $12.00 to $18.00 next year, its price could grow another $2.50 from $14.15 to $16.65 by late- May, 2019. 

ESCA Dividends

Escalade's most recently declared quarterly dividend was $0.125 per share declared in April, and payable in June.  That $0.125 Q dividend equates to an annual payout of $0.50  for 2018 and yields 3.5% at yesterday's $14.15 closing stock price.

Gains For ESCA?

The $2.50 estimated year over year price gain plus an anticipated dividend of  $0.50 makes a projected gross annual gain of $3.00 per share, which will be reduced by the costs to trade those shares.  

$1,000.00 invested today at the $14.15 price buys 71 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts  $0.14 per share.

Taking that $0.14 brokerage cost out of the estimated $3.00 gross gain per share leaves a net gain of $2.86 X 71 shares = $203.06 or a 20% potential net gain on a $1,004.65 investment.

Therefore, Escalade Incorporated (whose ticker symbol is ESCA), now shows a possible 20% net gain including a 3.5% dividend yield. 

Two analysts cover this stock. 

One says "buy."

The second says GM will "outperfom" the market. The median analust recommendation is 1.50 or outperform.

Y Charts also rates ESCA "attractive" as for an overall "Y" rating. Also Y Charts shows "Good" for a Value score of 9 out of ten points. And YCharts also ranks ESCA "strong" with 9 out of 10  possible Fundamental points, and shows a  Historic Valuation score as 11.72% undervalued, based on a $16.03 historic value multiple.

You could look at all those numbers like this: Escalade Incorporated (ESCA) has made money, is making money, and could net a 20% net gain next year including  3.5% dividend yield. It could be more, it could be less.

The above speculation is conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if General Motors Company (GM) is worth your time and money.