As was already said, poison pills are put in
place to disuade hostile take over attempts. They do
this by flooding the market with stock.
has been low for some time, and is trading below Book
Value (Assets less Liabilities). In most cases a stock
should not do this. The stock price is supposed to be a
measure of the worth of the company, therefore, the stock
price should reflect the book value. When a stock is
trading below book the assets of the corporation could be
sold off for a greater value than that of all of the
stock added up.
Management wants to save their jobs
because if there is a hostile takeover, management is the
first to hit the unemployement line. The best way to
protect against hostiles is not poison pills but to keep
the stock price up. Deck managers don't seem to have
the ability to do this.
Mean while, the
stockholders have to deal with incompetant management. Poison
Pills (a very 80's term, more current lanquage is
"Stockholders Rights Plan") are very hard to get removed once
in place, but it is possible.
This is just speculation but here is what I see
There was a big sell-off on Wed and Thurs. Why? I don't
know, but somebody knows something, big lots were sold
on no news. This inturn triggered the daytraders to
take notice (volume alert and slide in price). I
believe the recent increase in price is from the
day-trading. If you read the annual report, it says Q2 results
will NOT be as good as Q1 results. I don't think
anyone who has really researched this company would be
buying at above $3.5.
I sold into the strength today
and am looking to buy again under 2.5.
My post mentioned several possibiities as to why
the stock might be moving. They could all be wrong
guesses. Something is clearly up though, but I have no
idea what gives. I am thinking of selling into this
strength. While I believe business must be good (Sports
Authority mentioned sandals as one of the best selling
classifications in their footwear department) I think it wise to
What insider buying are you talking about? There
was some insider purchases last fall and winter, but
nothing has happened this calander year. What insiders
are trading and where are you getting the
Otto sold some shares at around 5 last fall and didn't
buy any back when they were below 2. He must not
think the stock is that good of a deal or have much
faith in his ability to strenghten the company (and
it's stock price).
big sell off on Thursday... large blocks sold
making me think it was insiders. Does anyone have a
comment about that? Then Friday a lot of selling took
place at the ask. Does anyone know when the Q2 results
will be released? The annual report said Q2 will not
be as strong as Q1 was since most orders are placed
in the winter. Comments? Do we hold through
Any word on the Teva license?<EOM>
"""Even with the decline in footwear (sales), we
DID see STRONG GROWTH in our casual footwear
category, INCLUDING SANDALS.""""
Sports Authority is
having a tough time. Comp store sales declined 6.4% in
May. APaine Webber just downgraded the stock.
BUT IT'S SHOWING STRONG SALES GROWTH IN
3) INSIDER BUYING
4) SUMMER SALES TRENDS
REALLY STRONG....UPSIDE TO SALES FORECAST
UPSIDE TO EARNINGS EXPECTATIONS
6) POSSIBLE SALE
TO LARGER PLAYER.....INDUSTRY CONSOLIDATION
I realize that Teva is the market leader in
sandales, but how big is the market. I have also worked in
the outdoor market and sold the hell out of Tevas
(enough to realize that Deck always ships preseason
orders late, and runs out of inventory very early). The
thing to remember is that Teva is not the entire
Deckers Corp and that the high-end, water sandal that
Thatcher designed while guiding is only a small portion of
the companies sales. The general public has no use
for the Guide style sandal and will be more
interested in the "walking" lines. These more general lines
is where the bulk of the revenue comes from in the
If the stores quit selling them
the majors like REI, Gaylans, NRS, and a few others
can not carry the company.
Also REI, NRS and
Gaylans do not carry Simple, UGG or Picante.