Pinkerton: Thanks for replying! I wonder if you would still be so negative if you were to look at the Fall 2016 line. You also do not seem to think that brands such as Teva, Sanuk, and Hoka One One are worthy of mention in assessing DECK's future. If you look at #$%$ the sporting goods company's stock, for example, it appears that they have trouble keeping Hoka shoes in stock. The main problem for UGG would seem to be that the frantic buying of the original Classic style has leveled off or declined significantly. But other styles, such as a couple of the Slims, seem to be doing extremely well. And warm weather styles also seem to be doing ever better every year.
Pinkerton: You seem to have only negative things to say about this company. Is your view that there is nothing positive to say, even about their shoe offerings? What is your theory of why the stock is climbing so rapidly now? Just ignorance, or what? I see that today the stock broke through its 200 day moving average. Any clues why? Thanks!
Dear Z: Why do you think that a share buy back would be desirable? To make it look like the company has confidence in the future? One big argument against buybacks is that they benefit the executives rather than the shareholders. The reason is that the buyback increases the earnings per share, which triggers bonuses for the executives -- when the increased earnings per share are actually an illusion. But then maybe you think the illusion of increased EPS would generate more buyers of the stock. My view is that it would be better for the company to buy another company that would add earnings to their bottom line.