Costanza Stock: DECK

Here’s a stock for you bottom fishing mavens. Yeah, I know many people have an aversion to ugly furry boots, or “UGGS”, as they are fondly called. But, realize that they’re one of the best sellers at DECK.

In fact, to give you an idea how unimaginative people are,  over Christmas time, Uggs were one of the most popular presents given, according to an informal poll of middle class married men (yours truly excluded, of course). Yeah, I know. It’s sad.

Given that sales of Uggs have been a boon to DECK, on the overseas front, however, the picture has not been so warm and fuzzy—-as they are freezing in Europe.  Slow and dicey sales prompted analysts at Piper Jaffray to cut the price target on DECK yesterday from $126 to $97, which caused the stock to lose $7, closing at $64.26. Today saw it recover a little to close at $64.96.

This sets up a possible “Costanza trade” for DECK, as the stock did try to bounce today, reaching an intraday high of $67.46, confirming a reversal, before getting slapped back down. And, of course, it makes absolutely no sense why a rational, intelligent, fashion-conscious person would buy this stock.

That is all. Carry on , gents and ladies.

Disclaimer: Not a solicitation. No furry animals were harmed as a result of this post. Profits not guaranteed by the U.S. Treasury, The Fed, FDIC, FINRA, SEC, DEA, FBI, or any governmental agency. You will not get bailed out, so look and think before you buy.