I re read Mr Weinberg’s press release and do not see enough to justify a 20% drop in share price. But what do I know? I agree that it has some weasel talk, as in “Corporate Speak”. But down 20%!?

My thoughts tell me I was stupid to buy more shares. “You should have waited until next week Frank!”…“shut your trap” I say in response.
I am running things here and we are waiting until next week to sort it out!. “OK OK” says the the trap before being shut.

Meanwhile I am thinking of the old saying “was it something I said?”

Yes Mr. Weinburg it was something you said and how you said it.

Modified buy and hold SKX


But down 20%!?

I agree completely. If SKX’s current and forward-looking P/E was in the 20s’ or 30’s or more, reflective of the expectation of a very high growth rate, such a drop might be more understandable. But unless I’m mistaken, it’s P/E hasn’t been above the low 20s lately, and now is below 15. That’s well below the market as a whole and seems to indicate that the market thinks that SKX will be growing much more slowly than the rest of the economy (as represented by market prices). That’s just a bit too hard for me to believe.

[Note that the alternative explanation is that the market doesn’t believe that SKX’s current earnings are sustainable and therefore the current P/E is not an accurate estimate of its “true” P/E, but that’s sort of equivalent to it saying that it won’t be able to continue growing.]

as always, i am full of carp