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Deckers Outdoor Corp. Message Board

  • johndoolittle46 johndoolittle46 May 5, 2013 6:38 AM Flag

    market pretending UGGS is not a cash cow

    None of the "press releases" that came out online with the earnings results mentioned how much cash is produced by this company. Results are anned as "sub-par" or not what was "expected" as if ANY OF THAT MATTERS to a stock and its potential appreciation.
    Ladies and Gentlemen, it do with hits or misses, beats or sub-par. Everything is about measuring Present value-future cash(formula coined by Warren Buffett). Funny how the business media don't understand this(actually not so funny and more pathetic) and don't even seem to understand the business they are writing about.
    But kids, the market can ONLY pretend that UGGS hasn't been a cash cow for 8+ years now. It can retend the company won't produce likely more than 250M cash this year and ongoing as sheepskin costs are 10% lower over 2012. The market can pretend UGG pure won't lead to more growth and further savings at the same time nor lead to more international sales as a result of the lower price point.
    The "market" can pretend that despite Deckers having double the earnings and double the cash production of 5 years ago and the wind at its back after two consecutive years of rising sheepskin costs finally subsiding that this company is only worth 15% more than it was 5 years ago.
    The "market" does this all the time; pretends the obvious isn't so obvious. It tries to wait out the impatient(which obviously works well in this short minded society of today) as well as wait out those not that solvent(again, not so hard in todays society and where people don't understand the point of investing which is about future CASH). It is why you see Deckers so low despite in 1690 days having as much cash as company is currently being valued and you see a company like Lululemon which has 35% less cash production and UGG cache trading at more than 6X Deckers value and will inevitably decline in time. But the market does a lot of "pretending" to SQUEEZE people out of their investments until reality like future cash catches up


53.19+3.94(+8.00%)May 27 4:02 PMEDT