Running with Skechers USA

If there is anyone under 30 in your household, just ask them about Skechers USA (SKX).

This company has captured the hearts and minds of the youth of America and should catch your interest as an investment, too. It makes shoes that kids (and the young at heart) want, marketing through Nordstrom (JWN), Macy's (M), Dillard's (DDS), J C Penny (JCP) and Foot Locker (FL). Just look at any sales circular in the newspaper and you will see ads for their product.

Analysts like this stock, too. There are four analyst following this stock and they continue to increase the earnings expectations for the company, with all four upgrading the estimate in the last 30 days. This year's estimate of 49 cents goes up to $1.11 for next year, better than double.

BarChart likes SKX too, with all 13 technical indicators giving a 100% buy rating. Hitting 16 new highs in the last 20 trading sessions shows momentum you can appreciate. The last 65 day have seen an 84% price appreciation.

Recommendation: Buy SKX around 25 with a protective stop loss at 20.

Disclosure: I hold no position in SKX at the time of publication

Comments

[algo41:]

If it is worth $25.00, why would you sell it if it falls to $20.00 (without any news)? If you feel there are all these people who know something you don't, you shouldn't be in the market.

Oct 22 06:16 PM

[Jim Van Mee...:]

Algo41 - My picks are highly speculative and I use technical analysis to find them. If I place a bet and its wrong, I don't ride it down to prove I'm right. The 50 day moving average is my tolerance for pain. I may get a minor blister but I won;t get burnt..

Oct 22 07:02 PM