I am still with TT for convenience, but am going to buy some puts this week for the ER. I understand the logic of greed and trying to maximize profit, but did they not study first-world problems created by other companies like Netflix when you raise prices and act defiant about it? I am sure it will recover, but it is going to drop forecasts...
Someone has done it for both Cramer and Fast Money, or at least did a couple years ago, and found their returns were identical to a coin flip combined with a baboon throwing darts.
It is more that this has been a turn-around from 2012-2013 and people are seeing mgmt once again fall on its face. The reports are so similar and the PR is identical in trying to cover up the problems. I think most of your selling was from people who are tired of reports that are full of excuses, sandbagging, and too much appearance of a pump and dump in the 90s.
Personally I am planning to cut my losses this week and set a strangle into UA for its report - I would say UA has a solid chance of either popping or sinking on this report as it is at nose-bleed levels. With DECK, unlike Lululemon's summer report that was somewhat similar, I see no real turn-around for the company and that right now it is a falling knife. There is no shakeup with this shoddy mgmt and until the CEO is held accountable, he will keep playing these games. I will reconsider when this hits the 50s and becomes a definite buyout candidate.
Bought insurance as I headed to work (I work odd hours in Asia, so my morning time is really about 1-2pm on the market. I wish I had just cashed everything out and played a strangle - it would have paid off my house. Instead I am basically down a few percent, but nothing compared to what it could have been!
Now I have to reflect over the weekend to determine my next course of action with this stock - need to see if this support at 66 will hold. This looks similar to 81 last Q, so I will probably sell calls about 10% out of the money on a weekly/bi-weekly basis. I expect mgmt will kick in the share repurchase at these prices.
The COO news at a minimum was leaked when it went from 86 to 78 on no news other than a small downgrade in the middle of the day after it was already falling. Again, no good news ever comes out at midnight as their COO press release did. No faith in management at all at this point. Ridiculous conference call as well - they literally failed to keep shelves stocked.
Thankfully I picked up puts yesterday before close - had a "gut feeling" this would not be pretty. Figured it was insurance in case of a disaster. That COO announcement was a bad omen of things to come. But I really was surprised at this report overall - mgmt just needs to be gone, and I really mean gone - they stink. Execution was awful.
Read the conference call - anytime an ER release lacks top/bottom lines in the first few sentences and I have to search for it we know we have a problem. Martinez was very clear that mgmt did not execute well this Q at all. They literally had solid strong sales but somehow failed to push out enough inventory for the basic boots as well as lacked hedging on FX.
Glad I picked up puts yesterday - the way they replaced the COO was quite ominous as I repeat: no company or person releases infromation at nearly midnight when it is good news.
While I agree the midnight announcement was suspicious, you know he announced he was retiring in April? Not a shocker, but expecting solid numbers with guidance to flop.