ugg sandals uk sale UGG seller Deckers Outdoor is one hot stock

ugg slippers boots UGG seller Deckers Outdoor is one hot stock

But can something still be considered a fad if the time that the exaggerated zeal winds up lasting for a period of years?That’s exactly what investment firm Al Frank Asset Management of Laguna Beach. Calif. just did. In the company’s Prudent Speculator e mail note to clients Friday, analysts said they “reluctantly said goodbye” to Deckers.The Al Frank analysts wrote that the stock was one of the firm’s “biggest winners ever.” They indicated they first bought it in May 2001 at a price of $1.31 a share and sold their remaining stake at a price no lower than $66.83.The analysts conceded that “the top and bottom lines at the UGG purveyor have for years defied the gravity that usually deflates most companies operating in the fickle fashion footwear biz” and that they expected the strong growth to continue. But they added that “the shares have become too richly priced to justify a continued hold.”You can hardly blame the firm for taking profits after a more than nine year investment that generated gigantic returns.Bucking the trend: 7 growing companies in slowing sectorsBut another analyst argues that the stock isn’t even as pricey as estimates indicate when you consider that Deckers has had a history of issuing conservative guidance and subsequently blowing away analysts’ projections.As strange as it may sound, Deckers could very well be the Apple of the shoe business.Taposh Bari, an analyst with Jefferies Co., wrote in a research note last week that he thinks current revenue and earnings estimates for 2011 are too low. He also points out that the company has a pristine balance sheet, with $250 million in cash and no debt.Bari estimates Deckers will finish next year with $350 million in net cash. When you factor that into the equation, he argues that the core Deckers business is trading at just 10 times 2011 estimates.Sure, many still think the UGG is a fashion faux pas. One definition for UGG on the snarky Urban Dictionary website is that they are “hideously unattractive footwear named after the mind possessing ugg gnomes living inside the thick material who convince girls that the boots actually look good with skirts.”
ugg sandals uk sale UGG seller Deckers Outdoor is one hot stock