Kayak has phenomenal growth(93%) but only earred 9.8M dollars last year. How is that company getting bought out at 1.8B for less than 50M in profits, yet DECK barely hanging on to 1B for 150M in earnings?
The market can stay irrational longer than one can stay solvent, that is why.
Part of me wants the company to continue to borrow money to buy more shares after this buy-back si finsihed to continue buying at 1/7th the real valuation of this company, while the other would like a dividend however minimal, instuted to fight shorts. Either one will be great for me long term, buyback is better for long term, dividend to fight the shorts better for the short term.