Haven't seen any insider buying even at these low levels. If management had faith in the company wouldnt they be buying at these levels? currently the float is about 39M shares. The CEO only owns 250K. He speaks highly of the brand, but he doest put his money where is mouth is, which concerns me.
Not that I like Cramer in any way, shape, or form, but I did hear him say DECK could 5 billion in market cap. I've never heard him say 10 b. I do think 5 b approachable in the next 2 years.
The share price cannot be kept in the 60's for so long. If there is any buyout chatter it will be trading much higher, at least in the 90's. Then the shorts will start covering and with a low float, the price will sky rocket even beyond our imagination.
Honestly, I don't think the management will sell the Company. However, within few months the share price will be in the upper 80's. Even today, on a bad tape, the stock behaved very well.
Completely agree with you. But no company is going to offer 128 with the stock trading at 64. Is this company worth that and more? Absolutely. But a company now would get away with offering between 100-110 easily.
In a buy out what matters most is the Market Cap. For a premium brand like DECKERS,if it's 10 Billion, the price per share should be $256, much much higher than $160. In a buy out the value of the company should be atleast in the range 5-6 Billion, especially after recent expansion in Europe and China. If you look at the share price during the last year apart from the last quarter the average price/share was over $90. Any buyout under $5 Billion ($128/share)in my opinion is a daylight robbery.
Current Market Cap of some premium brands (RL-16B PVH-6.5B, COH-21.65B NKE-51B UA-5B LULU-11B)
First off, who cares what Jim Cramer call for. You don;t hear him saying anything right now.
Secondly, even if Deckers should be worth at least 10B sometime in its future(I think so), no company would want to buy them out for more than they have to. Based on the all-time high barely being above 118 for less than 2 minutes, a 100/share buyout offer would be sifficient and both shareholders and the company would be getting a fair deal. Only the ones who bought over 100 would get screwed and that isn;t anybody's problem.