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Deckers Outdoor Corp. Message Board

  • johndoolittle46 johndoolittle46 Jul 19, 2013 5:27 PM Flag

    carl Icahn bought Nflx at 60

    stock quadrupled within the year he bought it and he has not sold a share(so he says).

    But the point is that he bought an asset left for dead that he(and I) both knew were not dead and the stock rewarded him faster than anyone could have expected.

    Deckers has gone up a significant amount YTD(the last 6 months or so). It has gone up 20% the last 52 weeks.
    Management is holding on to their shares and have not done anything for 20 months really.

    Company aggressively bought back 5M shares of itself the last 21 months.
    Management could rather easily buy more with board approval aside from the 79M still left on the current buyback program(which I would approve of) as we are cheaper today than 2 years ago as a company as there is more information out now(6 quarters have passed since initial buyback at 72/share) along with the information that management will be opening 130 stores over the next 29.5 months.

    Company still produces a lot of cash. Other companies that would have faced such a significant rise in their main products cost of 80% would be unprofitable and would have terrible margins. This company still has pretty good margins DESPITE sheepskin costs. UGG PURE integration if anything will at least lower any future potential damage sheepskin can cost us.

    Boat has stabilized, stock price and investors becoming aware and realizing stock still significantly undervalued for this fact.

    Should the stock be worth 118/share(old high) or 4B today? One can it would be fully valued TODAY for that price. But the stock is trading at more than 50% off the old high for 5M less shares and potentially 140% more stores. so in 30 months from now, one can somewaht easily see why Deckers should/could be worth much more than the 4B+ it was worth two years ago.

    Which is why management is sitting pretty with their mountain of shares(of which I oly wish I could afford).

    One day.


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