Was the Sketcher's selloff overdone?

Discussion in 'Stock Market' started by MarathonMike, Apr 21, 2018.

  1. MarathonMike
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    MarathonMike Platinum Member

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    A 27% bashing for lowering guidance for the next quarter seems like an overshoot to me. It's on my short list for next week as a trade, not a buy and hold. Any opinions on this one?
     
  2. Pavel Svinchnik
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    Pavel Svinchnik Member

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    Thanks for mentioning that one. Looks like a possibility but it may be a while until they recover. I checked their share price history. They were about $10 per share for six years, then jumped up to $50 in mid-2015, but ended the year around $30. They stayed around $30 for two years, then jumped up to $40 at the end of 2017 and now are in another plunge back to $30. I've read a few commentaries that it's a good buy at the moment; might get a dead cat bounce early next week if enough people pile on, so your quick trade might work out.
     
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  3. Moonglow
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    Moonglow BANNED

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    I'll keep my Sketcher's till I wear them out..
     
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  4. Pavel Svinchnik
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    Pavel Svinchnik Member

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    Is investing in a shoe company an admission of defeat?
     
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  5. Manonthestreet
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    Manonthestreet Platinum Member Supporting Member

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    What other considerations do you weigh other than a seeming anomaly in price action?
     
  6. Care4all
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    Care4all Warrior Princess Supporting Member

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    When I was Shoe Buyer for Dillard's dept stores, Skechers was a new brand that came out.... at first they sold Doc Martens that were popular at the time...

    I know the owners.... Green something or other....oh yeah Greenbergs....father and son....Robert, the dad....I believed owned a footwear company that he created before Skechers called LA Gear.....don't know if they are still in business? I think it went public a few years after he created the brand...

    Then him and his son Mike, first started with Skechers as a distributor of Dr.Marten's shoes....kind of a thick soled funky looking oxford that went well with the grunge look back then.... but that only lasted a year or two....then they transformed their footwear line in to very junior lifestyle shoes....all had a funky edgy look and it took off!

    Haven't followed the footwear industry for a decade or so, so I can't help you on this stock situation....
     
  7. MarathonMike
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    MarathonMike Platinum Member

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    With SKX, they have delivered solid earnings for the last few quarters including the current one. According to everything I read and heard on CNBC was that the selloff was specific to negative guidance for the next quarter only, not for the year. Aside from that I believe they make excellent products and their advertising is very effective.
     
  8. Care4all
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    Care4all Warrior Princess Supporting Member

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    everything as far as footwear is made in CHINA, or darn near most shoes are made in China....

    maybe the outlook for Skechers is related to trade, and trade wars looming....

    look in to that angle...
     
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  9. Manonthestreet
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    Manonthestreet Platinum Member Supporting Member

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    If I may ...how did you get into trading? Guy at work kept pestering me into taking this 5 grand class with promises of riches but I declined. He went on to lose enough he's still working instead of retiring early. Dont know what secret sauce they sold him. I assumed it was an education in some sort of proprietary system....something more than this stock is down maybe too much........please dont take offense, thats not what I'm saying you are doing which is why I am asking.
     
  10. MarathonMike
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    MarathonMike Platinum Member

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    I am not presenting myself as a stock analyst. If you read my original post I was asking for other opinions on Sketchers. To answer your question I am self taught and have been doing my own stock trading for 30 years. I also do not have an financial account manager. I do it all myself. Between stocks, real estate and my day job as an engineer, I retired comfortably. I trade now not out of necessity but because I enjoy it. That's all 100% true but you can choose to believe or not believe it.
     

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