Have been following this stock since before the
split. Just bought in today. Good company, low float,
great earnings, good momentum, low P/E....
didn't I buy before the split, you ask? I haven't
figured that out yet.
The recent sales by insiders were shares awarded
under the 1990 Stock Option Plan. Stock options
"expire" 10 years after issuance, ie: take ownership of
the underlying shares or loose them. Thus, you saw
significant selling, including selling to pay taxes.
those thinking insiders were "selling out", the 1999
Stock Option Plan will award 600,000 shares, plus
179,000+ shares remaining from previous option plans.
That's 779,000 shares technically owned by management...
not too shabby for incenting continued management
interest in the company's growth. (Interesting to note
that corporate share buybacks approximate insider
sales, preventing current shareholder
Lastly, the CEO (owning virtually all of the class B
shares - convertable 1 for 1 into class A shares - or
1/2 the company) has a very lucrative compensation
plan PROVIDED earnings growth exceeds 110% of the
previous year. Further compensation incentives exist if
growth exceeds 135% of the previous year. Is it any
wonder why the CFO preaches controlled "growth". His pay
depends on it. ... the way it should be for shareholders.
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I bought back in too early, too. Though I'm not
too worried as I know I'll recoup at some point. I
may pick up more. Am watching closely to see if
previous lows hold, if not then we may get a shot at 30.
For all who are worried about mm's--this stock
continues to behave according to traditional rules. Stocks
go up or down for no apparent reason--that's why
it's good to have some knowledge of technical analysis
as well as fundamentals. Remember, nobody has yet
come up with a system for predicting the market--if it
was as simple as "all great companies will only go
up" then we'd all be millionaires. We're caught in a
number of negative forces unrelated to KSWS. I'll repeat
my earlier advice--hang in there!
60 days after 4/29/99 is almost here. Does this
mean we will stop seeing huge blocks of sell shares
hitting the market? I can't say I blame the insiders for
exercising and selling. They've EARNED it.
I have kept
adding to my position on the way down from 38 1/2. I
truly believe KSWS will have another blowout quarter
and another surge upward to $60 by year's end. THe
problem is predicting the bottom (duh).
imo, the mm's have total control here. if k-swiss
is truly a good company and their future sales are
as good as they seem then the mm's have probably
covered their shorts sales and accumulated for a further
run up. it happens all the time. the mm's and
specialist will accumulate (by dropping the stock price and
making the public sell) lots of stock of good companies
before they run them up. they can control the price of
the stock but eventually, prices will go up if the
company keeps producing. as far as the sec is concerned
they are full of former nyse specialist, mm's and
former brokerage leaders.
and nobody can blame him for taking some profit.
These guys have been invested in this company for a
long long time. There have been early years where
there was not much if any profit and the stock did not
have any movement. I would not have looked at this
stock sveral years ago.
I do not think that it
is odd that he has so few shares in hand at present
because he has so much more laying on the table. I
believe the vesting period will be up in around 6 months.
One other thing K-Swiss said was that if JFF
drops out and cancel any further orders (which is
doubtful), K-Swiss will still have a $105MM back-log of
orders. Not bad. It is amazing how the majority can focus
on a glitch and mis the over-all picture.
asked this before but nobody answered. What role and
how do the MM's play with a stock like this. I
realize what a MM is, but, how or what control do they
have to make a stock move up or down. Does the SEC
allow them to hold a block for a certain spread and
then sell for a profit or what? I am really curious. I
think as quarter results near, the MM's will not want
to play with the stock as they may be doing now.
WASHINGTON, DC, Jun.
24, 1999 (States via COMTEX) -- George Edward Powlick
of Westlake Village, CA, a Director, Vice President
of Finance and CFO of K-Swiss Inc. (SYMBOL: KSWS),
disposed of 49,000 class A common shares in 23
transactions for b etween $41.75 - $47.44 each between
03, 1999 and May 19, 1999. George Edward Powlick
currently owns 284 class a common shares. A Form 4
reporting the transaction was filed with the Securities and
Exchange Commission on June.>>
not sure how
many options he has but its odd that a cfo only owns
284 shares. the ceo sold shares also bewteen this
time but way less than the cfo. not sure what this
As you know, K-Swiss's future sales backlog is at
a level indicating a doubling of year ago sales.
This backlog includes what the company refers to as
"futures", orders placed for delivery more than 5 months
after the order is placed and at a discount to more
immediate orders. This allows the company to plan for a
controlled inventory level and sales. Problems can arise if
retailers subsequently cancel those "futures" orders, which
they can do without penalty.
But couple this with
retailers saying today that K-Swiss is their best
seller...they can't leep 'em on the shelves... etc, and you can
dispell thoughts that the sales pipeline is softening.
One factor all K-Swiss investors should know is that
the company does not participate in big end-of-year
sales. They focus on Spring and back-to-school. You can
translate that into quarterly results so you are not
The JFF issue... is way overblown. JFF's
portion of KSWS sales are important, but no way critical
to KSWS. And given KSWS "at once orders" ..the EDI
program for restocking shelves.. FEET is not going to get
replenished K-Swiss stock if they're not paying. The credit
worthiness of FEET will determine how much credit KSWS
extends to them. The recent episode of Foot Locker's
sales were more important, as they are one of K-Swiss'
major retailers, but their total sales has little to do
with a "hot seller" like K-Swiss since they derive
significantly more revenues from non K-Swiss products.
issue all apparel companies fear is loosing sales due
to changing consumer tastes. That's the killer in
K-Swiss does not have that issue
today. In fact, quite the contrary.
As for those
insiders sales, they received a package of options which
were exercisable within 60 days after April 29th,
priced in the $5-$10 range. So... they took their money.
If you read the April prospectus, John Hancock
Mutual Insurance Company also sold 132,000 shares at
$23/share back in March.... not a swift move considering
where the stock went after than. Note: John Hancock
still owns more than 534,000 shares (7% of the class
Do your KSWS investment some good. Buy a pair of
K-Swiss shoes this weekend, from a retailer, not the
K-Swiss Club web site. Web site sales are ok, but you
want "retailers" knowing they have consumers out there
who want K-Swiss product. K-Swiss web sales don't
And finally IMO, you are being dup'd
out of your shares if you sell at today's prices...
MM are playing with your head, and your wallet!
with a friend investment buddy who talked to
K-Swiss directly. K-Swiss is receiving regular payments
from JFF. The situation that JFF is in is serious for
them, but, they are a big chain and filing for Chapter
7, 11, or 13 would not do much for their bottom
line. JFF has money sources that they have not tapped.
I am certain that JFF is exploring all avenues and
will pick the direction that is best for their bottom
line. I would anticipate that JFF will work through
their ordeal and continue on with a revised and better