Deckers Outdoors (DECK -5.8%) continues to slide lower as shares have now lopped off close to...

Deckers Outdoors (DECK -5.8%) continues to slide lower as shares have now lopped off close to 30% of their trading value in a month. NBG's Brian Sozzi wants to make a case that valuation is juicy for the company with the iconic boots, but says reality forces his hand. In a nutshell, the outlook looks dicey for Deckers Outdoors with it needing to sell higher-priced Ugg boots during the holiday season to strapped consumers with trendier alternative popping up right and left.

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  • sheeple2012
    , contributor
    Comments (203) | Send Message
    consumers are now "strapped"? what about all the 26 year-olds that are emerging from moms basement to bolster the housing market that SA posted a few articles ago?? i'm confused...
    25 Sep 2012, 01:58 PM Reply Like
  • frankiethepunk
    , contributor
    Comments (301) | Send Message
    Maybe I am biased. Generally I don't form too close an attachment to a company's stock for ego sake. For example I dumped Apple when it came out with the new iPhone 5 after making a nice juicy profit.


    But I tell you this market action on Decker totally confounds me. If I thought it was warranted I'd dump the stock mercilessly.


    So all these analysts are coming out with these negative stories about the UGG Boot. Now I'm guessing they are talking about the UGG Classic Boot. So I went onto the companies website to look at the products it sells. Turns out that Decker doesn't just sell one extremely popular boot it has a whole eco-system of footwear. And from what I can judge well made and stylish.


    Moreover the company is expanding its stores in Asia and Europe. Now I acknowledge that Europe is going through some tough times right now, but to sell the stock off by 70% in a year on the basis of one boots sales strikes me as slightly moronic.


    Think for yourself people. This is a great time to buy Decker! The balance sheet is super strong, its margins are great, the ROE, ROA, CROIC and ROIC are all outstanding for the most part. (Cash flow has been been below normal in the past couple of years) In summary, the prospects for the company over the medium to longer term looks just great.


    It seems to me that this is one of those occasions where the market woke up and took stupid pills. As Ben Graham might say, some days Mr. Market will offer to sell (and buy) you stock at a ridiculously low price.
    25 Sep 2012, 02:42 PM Reply Like
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