Opinions
Peter Imhof
Skechers USA Inc.
SKX-N
PAST TOP PICK
Feb 28, 2017
Stock price when the opinion was issued
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Had a big selloff after missing earnings. This just underscores how scary owning individual stocks can be. This was a real surprising momentum play and it did extremely well. They are apparently opening up 50-60 new stores this year. In addition, there is a holiday season coming up. This is fashion and fashion is fickle. He would rather go with a more diversified name with thousands of stores around the world.
The stock has come off, but the earnings have come through tremendously over the last number of years. Earnings were $.07, then $.31 and then $.96. For 2016 they are probably going to earn $1.50. They are going to report in about 6 weeks or so. For 2016 he is looking for more than $2 a share in earnings, even though the earnings growth is going to be a bit more than 30%. Stock is off, so this is a very good opportunity.
(A Top Pick Jan 8/16. Down 3%.) Had thought this was a real GARP story, and the stock looked very cheap at the time. They had very good earnings growth, however, they stumbled on a couple of quarters and the stock really took a hit. This last quarter was better than expected. He exited this.