with someone I kno about Deckers stock and stocks in general. Amazing how dumb money thinks.
I present the whole "Cole HAAN which makes no money and had only 500M in revenues was sold by Nike for $570M to private equity so UGGS which makes more than 1B in revenues and 135M in profits is OBVIOUSLY(how can there seriously be an arguement) worth sigificantl more, minimum double just for the name as it makes more than 1B in revenues and actually does make significant money".
So the persn argues back "If that is the case(it is as the numbers are there for anybody to see on the Key statistics page) why is the stock not higher?
I just couldn't believe it. This is how DUMB MONEY thinks. It is not about how undervalued a stock is or why relative to other companies or brands; they are stupidly looking at the SHARE PRICE for confirmation as to whether a brand is worth investing in!
I wanted to say "As soon as the market recognizes what I recgnize, I'm gettingthe $$$$ out", but just left the conversation as is.
You cannot reason with DUMB MONEY as they think the game works in a way that honestly makes no sense. The whole point of a deal is YOU recgnize value in something NOT reflecting value.
Who wants to buy a $300 suit for what its worth. Where is the deal in paying $300 for a $300 suit? You want to pay $100 for a $300 suit as you are wearing what is worth $300 to everyone else(those who don't get the same deal because they didn;t take advantage of the oppurtunity when it was on sale) for JUST $100. There is value when things are on sale, not when things are at full prce which is why stores have sales every now and then to create Traffic. But then on reular days, the product is full price.