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Author has a degree in Engineering and is an avid investor in the market. Experience in industrial materials and structures. In college studied atomic & nuclear physics as well as material engineering. Eastern European
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  • 6+ PE prior to Christmas Sales = Extreme Strong Buy 3 comments
    Oct 29, 2010 12:39 PM | about stocks: SKX, NKE, FINL

    Yes believe it or not there is a consumer retail stock that is 2nd in the nation in sneaker sales and is trading at a PE just over 6.

    Skechers USA targets mostly the girls with their flashy  & colorful sneakers. Everytime my little girl catches one of the Skechers commercials she does not waste the chance to let me know she wants one of those colorful  sneakers for XMAS. Its hard for dad's to break their little girls hearts when it comes to their girls Xmas wish list.

    I was shocked going online and finding (SKX) shares down -50% in the last 90 days. Like they say with trends, what goes up must come down, the opposite is true here, what comes down must go up especially when earnings keep coming in like they have for (SKX).

     

    (SKX) is on my girls Xmas wishlist and on my Stock buy List. 

    3 month bottom for (SKX) is in, $38 to $19 in 3 months
    Shares of (SKX) started going down 3 months ago and now with only 3 weeks till Christmas buying season, the shares look perfect for value investors looking to buy retail stocks ahead of Christmas buying season.

    Zacks Equity Research, On Thursday October 28, 2010, 9:25 am EDT

    Skechers USA Inc. (NYSE: SKX - News), the designer, marketer and distributor of footwear, recently delivered third-quarter 2010 results that missed the Zacks’ expectation for both the top and bottom lines. The Zacks Consensus Estimate had been falling prior to the earnings announcement.

    The quarterly earnings of 74 cents a share jumped 42.3% from 52 cents delivered in the prior-year quarter but missed the Zacks Consensus Estimate of $1.00.


    Stocks: SKX, NKE, FINL
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Comments (3)
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  • Thanks for the article - all good points. You migth also like this post:

     

    www.amvona.com/blog/tw...

     

    Amvona.com
    18 Nov 2010, 06:53 AM Reply Like
  • Gregory, excellent analysis.
    Pls note that the $287 million you show as debt is actually cash at SKX. Co. has an incredible $8 cash per share and no material debt. Buy back is coming at the end of Q1 IMO.
    Shape-ups are not a fad. Read some of the 3000 reviews at Zappos.com People are buying multiple pairs. They are buying mainly to resolve foot, leg and back pain issues. It's become a classic work shoe for nurses, hospitality industry workers, factory floor/warehouse etc.
    Amazingly, the 'old' one and a half year old model is still the most popular - so the inventory 'problem' is hugely overstated.
    Industry expert Matt Powell expects toning to grow another 50% in 2011.
    18 Nov 2010, 10:54 AM Reply Like
  • Thanks so much for the insight. I really apprecite it. I got the 287 mil. right off the Q3 10k for "total liab." - can you clarify further... - thanks.

     

    Really good to know about the "shape-ups" if that is the case, than SKX is an even better investment.

     

    Good to know about the buy back as well. I recently read the family that owns the co. is very passionate about growing it - so always good to find a company where the founders are still passionate...

     

    again thanks.
    18 Nov 2010, 10:59 AM Reply Like
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