"It probably won't go to $14 but you just never know. "
And SKX could run to $30 after any end of year tax selling is done.
You just never know.
Lets see the risk. Down $4 or up $9.
I DO KNOW that I am buy more SKX if it drops appreciably, unless there is a VALID reason for the drop.
"I ask you this: How can 100 million dollars of excess inventory take 1 billion dollars off the market cap? Only on Wall Street does that happen."
The argument would be that margins on Toning will not be as high going forward as in the past. I don't necessarily agree with this but it is what it is. SKX is clearly undervalued but that does not mean it can not get even more undervalued.
"if you dont think smart money is buying right now, then you should not be an investor."
No need to get pissy. Smart money bought quite a few things at 50% off over the last 2 years and ended up losing money. It is always good to get other points of view in a civilized fashion. I am long SKX but not overweight it, at least yet.
" How can 100 million dollars of excess inventory take 1 billion dollars off the market cap?"
That is the fantasy of greedy shorts and those that missed the $19 low.
SKX has $5 per share net cash. I expect $6-$7 net cash next year unless the do something with it.
And SKX is suppose to go down to $14? LOL.
I ask you this: How can 100 million dollars of excess inventory take 1 billion dollars off the market cap? Only on Wall Street does that happen.
Sales at retail continue to be very strong in all categories and toning in particular.
if you dont think smart money is buying right now, then you should not be an investor.
You are completely ignoring the role of the shorts in reflecting on SKX's recent market performance.
I have owned this stock several times in the past few years, and always came away with a high respect for management's sales ability.
There certainly is room for better corporate performance in the stockholder relations area, and the past few days do attest to that.
To sell your stock in a fit of pique over these facts hurts you and plays into the hands of the shorts.
I can almost promise you that one fine day they will decide (or be forced) to cover their short positions, and SKX stock will head higher.
I am long SKX.
Number looks "O~~Woo~~K" to me.
And December sales should be even better.
Inventory will be normalized by January.
I am sure the worst is over.
Now, it's the time for shorts to worry.
Let see what management says tomorrow.
I think management should use some money to buy back at least 10% of shares to trigger the short squeeze.
Completely agree! Numbers look good to me too. ShapeUps increased 50% and other items increased 10%. As soon as the inventory issue is controled to normal level, this stock will run crazily. We know SKX is growing and very profitable, this setback is temporary. I am not concerned about my investment at all. As long as SKX is making good shoes, longs will have good days.