I have come to the conclusion that if management can undertake a 300M buyback over 18 months, which currently amounts to about 15% of the total value of this company(shorts, you paying attention?) then a dividend of even 2% year(or $1/share dividend at this point give or take a couple of pennies) amounts to about 34.5M shares. Deckers makes more than 250M in cash/year, 34.5M dollars is just 10% of cash production, hardly a lot to cut out and start giving back to shareholders.
Management, take note, shareholders bigger than I are going to get impatient. Just take a look at the attention/hoopla around Aple and its dividend(Einhorn backlash which Apple is now being forced to give in to). I believe it is owed to shareholders who have stuck it out these last 18 months and longer!
It would also burn a hole in the shorts .... and would still have plenty of money for future potential aquisitions as well as share buybacks. Like I keep saying, the fact that management has all these potentail ways to reward CURRENT/Future shareholders with the tremendous cash makes it really hard to UNDERSTAND(despite acceting the market is notoriously irrational longer than most can stay solvent) how we are trading at a 1.85B valuation when so many other companies who don't have the oppurtunities our companies have trade at much higher premieums/valuations. That is wall street for you but that is also how one gets WEALTHY from Wall Street by profiting from the absurdity before enough people take notice and make it less absurd as TIME /CASH forces it too.
It's a little late for that, don't you think? With the stock down to HALF of what it was not to long ago and an enormous short position heavily entrenched with no buyers in sight, do you really think that a meaningless 2% dividend now is going to make a difference? Now, with revenues anemic at best and a real concern for the first time in the company's history?
The time for a dividend came and went (up in smoke) when DECK first responded to the short assualt. DECK chose a buyback rather than giving shareholders money back to shareholders. That proved to be a big mistake IMO.
It's never to late to start a dividend. I think we'll see one once the royalties expire on the other brands that were acquired. In the mean time the buy back will be shrinking the amount of available shares for trading, and adding to the bottom line. Once the new lines take off and the new stores break into virgin markets we will see quite a pop. A dividend will be icing on the cake.
Okay, 34.5M dollars is about 15-16% of cash production/flow but still, a miniscule amount and will placate myself and others who have been holding this for longer than myself. If the market won't reward the stock, a steady income will suffice, for some at least, until cash over the next 1693 days forces the markets hand whether they like it or not(obviously before 1693 days fully passes we will see appreciation from THIS current price as cash will amount to more than 80% of todays current value of stock price. So, very likely before than we will see tremendous appreciation to the tune of I am predictiong more than 150%(30%/year avg return on my low estimates).