DC Capital
Long/short equity, special situations, event-driven, arbitrage

Rocky Brands: An Undervalued Growth Prospect With An Improving Cost Structure And New Dividend Policy


Rocky Brands (NASDAQ:RCKY) is a small capitalization company that serves its customers as a designer, manufacturer, and marketer of premium quality footwear and clothing. RCKY has experienced exceptional growth over the past several years, but recently its performance in the market was suppressed by lowered guidance issued from several analysts who were unsatisfied with a decline in its return on common equity over the last year. As a result, its security price was heavily oversold and its technicals now present an attractive entry point. While I do not see the decline in its return on common equity to be an issue in the long-run, it's important that investors understand this as well.

Investors often perceive RCKY as...

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