This drove the price down 13% for the day? They did not lower the stock to sell as I can find, yet held the nuetral rating they already had.
** SKECHERS USA INC (NYSE: SKX - news) , $18.12, down 11 pct (1124 ET)
Susquehanna Financial Group cut the shoemaker's price target to $18 from $19 as it continues to face challenges in earning back shelf space after the fallout from its toning segment. The brokerage also said that sales in Europe (Chicago Options: ^REURUSD - news) , which accounts for about 20 percent of the overall revenue, continue to struggle with excess inventory.
Once again the market has priced the stock at around the last reported book value of the company.
From the last call transcript
Book value or shareholders' equity per share stood at approximately $18.14 as of June 30, 2012
You can find the entire transcript on my post dated July 25, titled Call Transcript. A quick view of the financials will revel they certainly are not going bankrupt (at least not in the next little while).
There was no good reason for SKX to be selling at above $20. Even with good back-to-school sales. SKX is a good company but it was well overpriced and I sold completely out. It could go lower. If it reaches bargain basement prices, I'll buy again.