This should be a $40 stock minimum, and would be if it wouldn't be for Sketchers terrible management team. It's hard to get behind a company that follows a nice little 3 year earnings run with an absolute stinker quarter due soley to unplanned expenses that should have been revealed long before. The top line growth is there, but unfortunately management hasn't seemed to grasp the concept of earnings. This company has buyout candidate all over it. I just hope the buyout comes after a blowout back-to-school quarter, so we get $35-40 a share instead of $25-30 a share.
Also, it's trading at 1.59 to book (Yahoo Finance), even cheaper than the 2 you quoted.
What's really insane is management's complete lack of interest in buying back shares at these depressed prices. Not exactly a vote of confidence in the future prospects of this company. I would not touch this thing until cooler heads prevail.