Turns out there are a lot of cold feet in NYC, without electricity, etc.....They are warming their cold feet with Uggs.
"The weather has turned colder in New York, a trader friend of mine said he walked by a Decker Outdoor [DECK 30.65 0.91 (+3.06%) ] store in upper Manhattan and there was a line to get in to get the firm's well-known UGG brand. What's odd is that the stock has been pummeled all year, going from roughly $75 in February to $29.70 today, largely on the belief that the UGG brand is over. Today Jeffries resumed coverage with a "buy," saying UGG "is far from dead," arguing that Google search trends interest in UGG remains roughly at the same levels as 2007-2009."
—By CNBC’s Bob Pisani
Natural disaster, loss of home-property-loved ones, is never good for anyone! Don't make such D/
A comments! Makes me ashamed to want to be invested here! No personal offense, btw, just dumb words coming from your mouth!
Chariot driver, I'd personally like to thank you for bumping up my post. Thank you!
Oh btw, I'm just stating the obvious. Jeffries already did the work for me.
Lets make a simple assumption:
risk rate of 6% on equities over the last 100 years
inflation of 2.5%(minimum) but I'll say 3%.
We get a future p/e of 16.02 and a price of 60 bucks on DECK with the next 3 to 5 years. I'm fine with that.
Americanchariot, shutup you clown. I can't stand people like you who overreact and take people's statements and make them into a bigger deal than they are, if only to draw some attention to yourself.
Jaques OBVIOUSLY, and I stress OBVIOUSLY you #$%$ that hurricane sandy was good. But after the fact, it IS good for DECK and many other companies as items/products will need to be replaced. One can state something IS good if it is a fact froma disaster, that thie rhtought process din't cause. Get a life and a brain.
Jaques, anybody with two eyes knows UGGS and the fashion of the product is anything but dead; its just sam oser and wall street spin grabbing tremendously cheap shares much like they did with many stocks in 2008 that in 3 short years paid off more than 800%. The game works over and over and those like you and me, who know the brand is anything but dead, that the buyback and the current stock price are a match made in heaven, the new to line growth that new product lines by DECKERS will bring in; al these will be talked about in CNBC three years from now when the stock is back over $100.
I won't wait till then to kee averaging down. I prefer to look at the fact that this comany is still going to earn 155M this year which is more than it did three years ago(when it traded higher and sheeskin prices were cheaper) so just imagine how fast our money will be made back if Sheepskin prices go back down a little bit and we work our way through the current inventory over the nexdt year. This is the most undervalued comany that I can see. Shoould be trading at $200+ 3 years from now.
Stay strong and stay smart Jaques.
Uggs management is reckless. The company is in a serious over inventoried position, blew $85 million buying back shares at too high a price, and wasted $30 million on a lavish corporate headquarters.
Uggs brand is not "dead', but it will not have the retail sheld space and, or, consumer demand it has had in recent years.
All things considered , in the next few months DECK stock price will probably settle somewhere in the $7 to $10 per share price range.
I totally agree. Analysts will begin raising the 3 to 5 year again.....late as usual. They have it at 7.6% currently. It's like shooting at a duck, as an investor you have to shoot ahead to hit the target. I get a I'm sitting comfortably.
I did a 6 to 18 month price target using the 7.6% I get a price of around $55.00. My 3 to 5 year target is around $68.00. This is VERY conservative and these targets are subject to massive change as the analysts raise there 3 to 5 year projections. If they analysts get it back to 20% I see a price target of 135.00 in 3 to 5 years.
BTW....I bought PCLN yesterday before earingings......Purely on a valuation basis. PCLN has fantastic stats.