The typical investor in FOSL was a momentum player buying for the 50+% EPS growth rate, FOSL had a nice run for almost two years and then a hint of dropdown in the growth (which was bound to happen no co. can grow at that prior rate) scared tham all away....Now we are slowly (way too slowly :)) gaining a base of value investors who see a company with a solid 20% long term gorwth rate and lots of updise potential...However, IMO, investors are waiting to see 4Q # to get e better grip on how the compnay will grow forward, now that the rapid growth is behind them. We all know FOSL had a blow out Q4 and will probably experience the same benefit of last year the retailers have to refill underestimated orders, which will fuel a storng Q1, I believe the 20% EPS growth is easilt sustainable and eventually this stock should settle down in the 30s. Comments welcome QB
Very astute reasoning. I think you hit the nail on the head. FOSL has great value right now, though, and I think the intelligent investor will recognize that soon. At these prices, much more than the 20% growth is acheivable for the buy and hold guy. FOSL is here to stay, no doubt. I see FOSL watches gaining popularity still.
I love my Big Tic. I've bought two now, and will buy more very soon!
you can't expect the blowout earnings of the past. The estimates have caught up to FOSL's potential but you can expect them to beat their current estimates by a safe amount. We all know FOSL had a great Q4. Hang in there. FOSL WILL see better days.