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Deckers Outdoor Corp. Message Board

  • indian8788 indian8788 Jan 28, 2013 3:21 PM Flag

    Is it Possible?

    Let's play a game called IS IT POSSIBLE?

    Is IT POSSIBLE that Deckers goes to $5/share? If it did it would be trading 1X earnings and the company would buy itself out. So no, it is not possible as the market doesn't value business's in this way.

    Is it possible we go to $10,/share? Again, we would be trading at 2X earnings, the company would be able to buy itself out if not finding a buyer before it gets to this price within two years. So no, highly improbable unless earnings go down severely.

    Is it possible we go to $15/share? This would value us at 3X earnings, excluding an increase in earnings, we would be able to buy ourself out in 3 years. So no, highly imrobable unless earnings severely decrease. So no, highly improbable unless capitalism is over and then it won't even matter as we will have chaos.

    Is it possible to go to $20/share?? 4X current earnings. Value would be about 750M. Cole Haan got bought out for 600M and it doesn;t even make any money! So NOOOOO!

    Is it possible we go to $25/share? Highly imrobable as we currently earn 150+ in an off year and we have 75M in cash. We also have a credit facility where we would be able to borrow a significant amount at that point to buy about half the comany if not more. So NOOOOOOO!

    Is it ossible we go to $30? We have gone there, but we bounced off it big time because like me, Smart Money knows the UGG Brand is worth at least $30/share because Cole Haan which is a nothing name was bought for 600M and it makes no MONEY!!!! So highly unlikely we get that low again.

    Starbucks reported solid earnings showing people are willing to pay premieums for what they like.

    MARGIN of SAFETY!!!!!!

    Z

 
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