Wednesday, August 04, 2010

Deckers Outdoor Corp. (NASDAQ) DECK
This week's stock is the marketer of the hugely popular UGG boots and Teva sandals. The company has
been showing some "monster" growth in earnings and sales and may be ready to make a big run higher.

The graph below shows both quarterly earnings and sales increases for the last 5 quarters. Notice the rapid acceleration in earnings in the last two quarters. This is extremely positive. Sales are also accelerating.


A weekly chart is showing a "Base on Base" chart pattern with a possible buy point of 56.27 (ten cents above the previous high (marker "A"). The last 2 full weeks have shown some nice accumulation on above average volume (marker "B").


Deckers Outdoor Corp. (NASDAQ) DECK - Markets luxury sheepskin footwear (Ugg) and sandals (Teva) worldwide. Also operates 18 retail stores - Group: Apparel Shoes Rel-mfg - Headquarters: Goleta, Ca - Market Cap:$2bil - Growth Rate (3-5 yr): 42% - 50-day Average Volume: 1.5m shares - Return on Equity: 27% - Yearly Earnings: 2011 EPS(est.) $3.95 +12%; 2010 EPS(est.) $3.52 +18% - Quarterly Earnings/Sales: Q210 EPS+156%; Sales +34% ;Q110 EPS +48%; Sales +16% ; Q409 EPS+29%; Sales+15%; Q309 EPS+30%, Sales+16%; Q209 EPS-31%, Sales+13%; Q109 EPS +7%, Sales+38%; Fund Sponsorship: 148(increasing); Management Owns: 3%; IPO Date: 10/15/1998; Earnings Due: 10/22/2010; Group Leaders: CROX, SKX, SHOO; - Why I like this stock: Strong group, good relative strength, solid brand, accelerating earnings and sales; high return on equity; strong chart pattern.