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Deckers Outdoor Corp. Message Board

  • johndoolittle46 johndoolittle46 Jun 26, 2013 10:29 AM Flag

    What I do not understand

    is how people do not realize this company initated a buyback of 100M at 72/share 20 months ago and then blew through it in about 3 months and initated another buyback in the low 50's for 200M. We used our credit facility for that and went into debt for 8 months.

    But we paid off that debt in less than a year with our cash flow.

    So if management had the brains and the to buy back shares at those higher prices and we now have evidence that our brand is still very popular and we have the ability to payback debt in extremely fast time, I find it hard to see how management would not again put metal to the pedal and back up the truck again with the stock still sitting so cheaply?

    This is a gimme.

    Yes, the economy is not so strong and being in debt is not a great position, but to have the oppurtunity to elimanate another 15% of the company with interest rates still very low is not a hard thing to figure out as well as the stock trading 33% below the price the first 100M of buyback was initiated.


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    • deck is set to lose about a buck a share this quarter..

      perhaps this information will help you understand why the company is not buying back shares -- they realize the stock is going to take a hit

      • 2 Replies to advisorydoc
      • at least you do not deny that they are set to lose a buck... call it throw away call it whatever you want but the company is obviously not going to buying shares in the face of the upcoming loss

        so yes call it a loss -- not throw away--- since you were wondering i thought i would help you out and let you know that is why the stock has performed so badly.... the time to buy will be after the earnings disaster... and that is when the company might to buy back shares then... till then

        deck is just gonna tread water at best

      • United, you are not familiar with this company and it is painfully obvious. Nor did you seem to listen to the previous conference call or any of these conference calls. This quarter was referred to by management as a "throw away" quarter which is expected. It is not NEWS.

        All that matters to me as an investor is management is again forecasting 1.5B in revenues which will be our 3rd consecutive year with 1B+ in revenues, none of which existed 5 years ago. We also have 5M less shares and are making tremendous cash.

        As for why management likely did not buyback shares with the remaining 79M yet, I think they wanted to have the clean balance sheet before the finished it up. I think it was important for them to show cash positive on the balance sheet just 8 months after being in debt to the tune of 266M.

        Huge strength to show cash on the books in the same year you were in debt for 266M.


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