Skechers USA Inc. Message Board
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Look out below. $10 coming soon
Ouch!
An even bigger fine could be on the horizon for Skechers, who is the biggest player in the toning footwear arena. The Federal Trade Commission has been in contact with Skechers about making similar unsubstantiated claims. Even before troubles arose with the FTC, The American Council on Exercise raised concerns about claims made by Skechers. More importantly, the damage done to the Shape-up brand will play out significantly in sales. The FTC estimates muscle toning shoe sales grew from $145 million in 2009 to over $1 billion last year. Expect that number to plummet this year, particularly with Skechers now in the government's spotlight.
There looks to be more downside momentum for Skechers and headline risk relating to a possible fine and potentially damaging lawsuit, is enough to recommend avoiding this stock.-
There will be a considerable fine to be paid by Sketchers. On that basis I think it is reasonable to expect the stock to fall below $10 over the coming weeks.
- 2 Replies to juliesirl
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If the fine indeed comes.
Quick math (real quick) shows that $100 million off the balance sheet leaves a book value of $16.30ish.
I used yahoo numbers from last quarter and rounded shares to 49K, so the dd is not the greatest admittedly.
The question then becomes, is toning's lose of revs and income going to damage the future value of the company another $6+ per share to take it under $10? I consider toning near a non-factor now.
I suspect this takes a hit short term, but just wondering if a buying or trading opp might develop if it gets overdone.
Any thoughts? I know the possible fine size could change things around. -
Please explain what your reasoning is behind this "considerable fine".
What specific promises were made to people when they put on their Shape Ups?
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"lol" "how many acounts do you have" "lol" "this clown shows up when the stock is at $14 saying short it, where were you at $21" "lol"
Sorry guys, there's a piece of me that actually misses jkwelli
hope this thing stays down here so I can load up with cheep calls in a couple weeks.- 3 Replies to Cartledge
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Interesting, now 1175 Nov $13 puts so far today.
http://www.nasdaq.com/aspxcontent/options2.aspx?symbol=SKX&selected=SKX&qm_page=30553&qm_symbol=SKX -
Who ever put that collar trade on might give you your shot at the cheap calls. Looks like whoever put it on is putting the pressure on this morning.
Just kind of watching. I sold the trading shares I had bought at $13.20 for $14.75 a while back, but will likely start nibbling at shares again in the $13s if it gets there for trading account (I lean to it will). Might go the cheap call route or sell naked puts in longer term account. Only thing I have right now besides common is Nov $14 naked puts I sold a while back for $1.20, so I might just add to those if the price gets right.
GLTA -
Ahh yes. I miss the resident message board Cxxt. I think she ran out of cash. Mommy has her locked up in the basement playing video games.
HAAAAAAAAAAAAAAAAAAAAAAAAAA aajkwelliSKXHBANbankruptaaa aa
I also miss sketchersoe. That person is comical in a strange way.
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