Skechers USA Inc. (SKX-N)

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

(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 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.

(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.

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.

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.