For some reason the stock price does not turn green until snow starts falling where the analysts live. Friday is when the next snow hits New York City. If it does snow Friday and the stock price follows then my circumstantial evidence will be validated. :-D
Dips are being bought over and over again. Investors are catching on to the value of the brand name UGG that I keep reorting alone is worth 2B just for the name. I keep trying to state that based on the brand name that we have and its future cash flow just from what it has is 3B. Then add in the other brands and top-line innovation/growth and you have a stock trading at 150/share at some point in its future easy, if not much higher.
It is not a questin of whether or not Deckers is undervalued. It is. It is just a matter of money finding its way from other investments to this investment as investors become more aware of the pure value that 39.40/share gives them. No other investment besides starbucks in my opinion offers more margin of safety.
Cole Haan sold for 570M which is the equivalent of $19/share for us. We are obviously worth more than Cole Haan, a brand that made no money. So just on that alone it is obvious the UGG brand name, just the name is worth what we are trading EASY. So the earnings and cash it generates automatically makes it worth much much more.
But just because it is obvious does not mean DECKERS won't behave irrationally. The stock market is irrational and people have trouble respecting that.