The Panic-Proof Portfolio (Stockchase Research) Skechers USA Inc. SKX-N TOP PICK Sep 02, 2021

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.

(Top Pick Jan 8/16, Down 17.37%) Last quarter they missed. He still owns it, but took some off. Analysts took earnings estimates down. They have $3.50 in cash per share. Given risk reward, he would still own it.

They are moderately placed. They have a really good growth outside of the US (40% of revenues now). Valuations are not too extreme. She likes that they have so much on line sales.

(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.

They're inconsistent. Buy Nike instead. Nike is the best of breed.