"Panicky Selling in the Shoe Sector"

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I’m way heavy into SKX. I just added to my position @ $29.90. I think the current price is driven by algorithms and fear which feed off of each other thereby exacerbating the situation. It’s JMO, but I think this company is deeply undervalued right now.

Hi Brittlerock, I’m also heavily into SKX, and also bought some more today at $29.88 after I saw this news article. I figure panicky selling may mean that I’m getting a ridiculous bargain. We’ll have to see.

Saul

Panicky trading in the shoe sector

Oct 23 2015, 10:37 ET | By: Clark Schultz, SA News Editor

Shoe stocks are falling sharply after earnings reports from Skechers (SKX -34%) and Under Armour (UA -4.1%) reset expectations on a sector where valuation has been stretched out.

Decliners today include Rocky Brands (RCKY -1.7%), Crocs (CROX -2.2%), Steven Madden (SHOO -6.2%), Deckers Outdoor (DECK -4.5%), Columbia Sportswear (COLM -9.2%), Nike (NKE -1.8%), DSW (DSW -3.7%), and Caleres (CAL -4.3%).

Retail shoe selling channels such as Dick’s Sporting Goods (DKS -2.3%), Foot Locker (FL -5.8%), and Finish Line (FINL -4.4%) are also sinking.

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Saul,
Between the time I bought and the close on Friday I made a nice bit of cash. Of course, I had no cash sitting about, so I sold Arista at a loss to get some cash to buy SKX. The last quarter wasn’t bad, just not as good a top line as expected. Hard to understand why they took such a beating. I find it hard to imagine that the stock will linger at this discounted price for long. Next quarter will be very telling.