Cramer predicts VF Corp buys DECK + big option trade this morning
~*Prediction Number 6:
Likewise, Cramer predicted that Goleta, Ga. footwear and apparel company Decker's Outdoor Corp. will be bought by counterpart V.F. Corp. He said that the buyer in this case would be able to better
promote and strengthen the target's brands for better results.*
~*Deckers Outdoor has been climbing off three-year lows, and one bullish trader is sticking with the footwear company.
More than 41,000 DECK options already traded today, 3 times its daily average in the last month. More than 15,000 each of the January and March 40 calls have changed hands.
The big print of 12,279 January 40 calls was sold for $2.95 against open interest of more than 40,000, according to optionMONSTER's systems. The March calls were bought for the ask price of $4.70 at volume that was higher than open interest in that strike, indicating new activity.
DECK is down 1.93 percent to $38.01 this afternoon. But the maker of UGG boots has been in a steep upswing since trading down to $28.53, a three-year low, after the October earnings. The stock was above $50 in late August.
The trade could be a calendar spread that would take a maximum profit if DECK is up around $40 at the nearer expiration. But it seems more likely that the trader is rolling a position forward, buying more time and getting greater potential returns by moving the calls out to the March strike.*
Jaques, we both know Cramer knows nothing more than either of us when it comes to a buyout for this comany. How many of us expected F Vorp. to come in and buy this stock when it was 60, then 50, then 40, and then 30. There is no buyout forthcoming imo, but bootmline is Cramer just talks; it is what he gets paid to do. It's an easy statement to make regarding Deckers because VF is the OBVIOUS choice. I don;t want to punch too many eole in the face, but Crmaer is one of them. Just really dislike the guy; think he's a major clown and part of the problem on WS.
I would not be surprised to find out he and his "Street" guys have been reading the YF message board and this is where they got the idea. Others have thrown around NKE as a buyer. I agree, I'd rather let Martinez continue to grow the company over time.
"Cramer is the founder, former owner and former Senior Partner of Cramer Berkowitz, a hedge fund where Cramer reported a compounded annual "rate of return of 24% after all fees for 15 years" at Cramer Berkowitz. He retired from his hedge fund in 2001, where he finished with a self reported 36% return in 2001."
That 24% per annum was done on margin so he really only generated 12% per annum, a time in which the Nasdaq index itself probably generated 12% per annum. I don't think it was their stock picking that generated excess return, it was their margin.