Before the market opened on October 18, I posted that shares had been bought in Deckers Outdoor Corporation (DECK/NASDAQ) the previous day and closed at $20.92.
In the post I noted that the company would be reporting quarterly results the following week.
Did it ever.
Investors were disappointed and the stock got slammed -- falling to $17 and change -- prompting my post of October 28 entitled, "Ouch!" The shares went on to hit their 52-week low of $16.92 on November 2. Bigtime Ouch.
Obviously, buying a stock and (almost) immediately watching it decline so drastically is painful. But I reminded readers that Deckers was bought with a 3-5 year time horizon, and that only time would tell if it was a mistake or not.
Well, it is still way too early to judge this pick. Yet I noticed over the last few days that Deckers is back up. It closed yesterday at $24.50 -- a nice gain since being first mentioned here.
Does this make me right about Deckers? No way.
Like I said, we're still very early in the game with this one. Deckers being up now no more makes me smart than it being down the week after I bought it made me dumb.
That's one thing I'm certain of.
P.S. Deckers is volatile. Its 52-week high of $40.12 was reached last December 27. There was a time before then that it traded in single digits. There are only about 12 million shares outstanding and there is HEAVY short interest. Roughly 61.72% of the public float is short, according to WSJ.com.
So anyone wanting in on this stock should be prepared for a wild ride.
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