Waiting for Decker’s Other Shoe to Drop

Deckers Outdoor (DECK – NASDAQ)

Wednesday, July 24, 2013

Deckers Outdoor (DECK – NASDAQ) makes trendy footwear like UGG, Teva, Sanuk, TSUBO, Ahnu, MOZO, and Hoka One One shoes.

Many of these brands have been hot at one point or another. But they are all somewhat expensive for what they are, and none truly dominate their niche.

So, while DECK rose with everyone else during the broad, six month run-up, the stock is now rising and falling on its own merits. It might plunge on a broad market tumble.

DECK 072413

Bottarelli Research Tip: DECK reports earnings tomorrow. On one hand, analysts have gone sour lately, dropping the average estimate for next quarter’s earnings from$1.22 to $0.76. On the other hand, DECK has beaten estimates four quarters running, so either the analysts simply don’t have a grip on this market or DECK’s books are just too opaque and hard to read.

What we see is a company with fading annual EPS that’s trying to set a new 52-week high. Frankly, we don’t think it’ll happen. The last time DECK hit this dead zone between $59 and $60, it tumbled -22.7%. A similar drop now would see DECK shares drop to the 38.2% retracement marker at $48.13.

Prepare Now for GMCR Earnings: Two weeks from tomorrow on Wednesday August 7, Green Mountain Coffee Roasters is set to report earnings. With an eye-popping 34% short ratio, this means that over 28 million GMCR shares are currently sold shot. Going into their earnings report, this could set GMCR up for a move of epic proportions. Will the move be higher or lower? And more importantly, how should you play it? All of our real-time trades will be issued to Bottarelli Research Options subscribers over the next two weeks, and you need to be a part of the action. If you like big movers, the time to join us is now.

How have we had such success playing GMCR, and what’s the play for their upcoming earnings report? The answers are revealed here.

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