Z: Why do you favor a buyback of shares -- merely to raise earnings per share, making it appear that real earnings have increased? Why do you think there are not more buybacks, because the boards of companies are all dumber than you?
umm...yes. Exactly that. Why would management in the midst of THE PERFECT STORM of rising sheepskin costs, warm weather, and lower interest rates go out and buy back stock with DEBT, when at that point in time we were in a bit of trouble and another warm winter in a row along with a rise in sheepskin costs would have killed our bottom line and cash flow even more?
Yet now, with the innovation of UGG PURE along with 2 years in a row of lower sheepskin costs and two consecutive cold winters in a row and now international growth, the company is just sitting on cash with the stock price only 9% higher than when the first buyback was initiated at 72 over 24 months ago?
This is nonsense. I totally do not believe the board is smarter than me, which is why I am clearly screaming for another 300M buyback to be initiated.
Company is calling for another double digit increase in its CORE brand, meaning another year of record revenues along with profits gained from UGG PURE.
Who understands this company more than me? Sam Poser? Perhaps. But cash should be used to buyback the stock at this valuation, so yes EPS goes up and FUTURE cash per each of our shares comes our way.