don't hold your breath! companies HATE to give money to their shareholders and many get away with it for a long time. but its too late now anyway. what, are they going to borrow to pay a dividend? that may work with apple, but it ain't going to fly here. they had their chance and blew it. if they had paid a 4% dividend from the get go instead of a stupid buyback that had absolutely NO effect on the short position here, they wouldn't be in this mess. in short, they thought the buyback would set things straight when the stock was at $90. it didn't. the shorts oblierated it.
this is a perfect example of whats wrong with the market. the moment it became "ok" for a stock to never pay a dividend (take a look at DELL for a perfect example), it all became a casino. if DECK had paid a nice dividend, the stock price would have been protected against the massive short selling that crushed the stock.
"Management, a dividend is due"
It's a little late for that, don't you think? With the stock down to HALF of what it was not to long ago and an enormous short position heavily entrenched with no buyers in sight, do you really think that a meaningless 2% dividend now is going to make a difference? Now, with revenues anemic at best and a real concern for the first time in the company's history?
The time for a dividend came and went (up in smoke) when DECK first responded to the short assualt. DECK chose a buyback rather than giving shareholders money back to shareholders. That proved to be a big mistake IMO.
and why are you saying in a "bad" year? retail is doing really well all the way around and we had a robust winter?
apple, almost half the price. and countless others too. your pocketbook is calling for you to be real
i agree. lots of issues to think about. i don't know how this plays out, but i think this is going to get much worse before it gets better.
you post is making me think that maybe the retail store idea was not such a good one after all. i just don't see it happening and apparently not much IS happening. face it: they have great shoes, decent prices and the most amazing line of shoes, mens shoes, summer etc. -- even slippers, and if you go into one of these stores (and i have), the stores are amazing. and yet, 6.6% same store sales increase yoy? yes, they had to reduce reliance on the UGG line and the retail store was a great way to do it, however i'm not sure that its going to work.
this quarter? i think they increased 7%. but this isn't the "money' quarter, now is it? what was the comp for the "money" quarter (last quarter, christmas quarter). can you answer that? third time now.
you said "Stock tanked. It didn;t help that sheeskin costs and warm winter collided either but the companys revenues only went down 10% at the time because of the warm winter "
really? let me ask you a question: what were UGG line revenues THIS WINTER in Q4 (which was cold) compared to the revenues in Q4 last winter which was extremely warm????
your warm winter theory as a one off is ridiculous
first, i don't know how you think they are going to build all this cash when the earnings are declining. this quarter was $.03 compared to $.20 last year's same quarter. second, i seriously doubt that DECK will issue a dividend, ever. if they had any intention, they should've / would've done it a while back to get the shorts off their back. those chose buyback instead -- HUGE mistake.
you might be right, but its going to take a while. the brand is strong, the products are high quality. but the company is stunned for now and it appears that the salad days are over. deck has invested lots into lines and other brands to soften the reliance on UGGs. they have opened their own stores as well to soften reliance on shoe retailers. how this all plays out is a question
don't want to burst your bubble, but deckers doesn't pay a dividend. that is one of its problems. if it did, this huge short position would have never happened.
my point is that deckers is no longer the growth story, or at the very least, deckers may not be a growth story any longer. to me, that is obvious. they had $.20 in earnings last quarter vs. $.03 this quarter and that is with the lower shares outstanding. you can be realistic or not. i'm not saying the company is a disaster, far from it. they have a great CEO and make great quality products, and that would be good enough for me except for two things: 1) question as to whether UGGs lines are losing steam and 2) whether the huge short position will continue to play with this stock like a toy. i'm going to sit it out on the sidelines. btw, i've invested long with DECK countless times throughout the years and never shorted it once. just trying to be realistic.
"downward move based on nothing"? for countless years, DECK had a PEG ratio well under 1. the PEG ratio now is 1.76 while the stock was halved in the past 1.5 years. is that nothing? did the 6.6% rev increase at same store sales impress you? a couple of years ago, DECK was on top of the world with revenue increases typical over 25%. it seems like this is all changing.
that's your analysis? you don't see any uggs at payless? you aren't going to be long for this market with that kind of thinking...
well, good luck. i'm on the sidelines on this one. this stock should come with a "dangerous for your health" notice though. between the short and the management, you don't know which way is up. as for them doing things right, they always have. they make great shoes. the only question is whether the UGGs line is getting long in the tooth (i couldnt believe that the UGGs sales were so low, so it is possible) and whether or not all the other irons in the fire like sanuk and their mens line take hold. i personally dont think that the mens line is going to fly.
i wouldn't join the shorts either. you are just as likely to get burned. the short might decide to cover massively -- then what would you do? like i said, the short owns this stock and having broken it, does whatever it wants. that's my take. did you think it went up after last earnings because those were great earnings? think again. this stock is a clstfk.
are you kidding? there was a massive short that came into this stock almost 2 years ago and hasn't left as far as i can tell.