ThesisValuation DECK trades with similar footwear companies in the consumer cyclical space. The average forward multiple in this sector is roughly 14.8x and the median is about 13.9x. DECK's 13.3x forward multiple trades below its industry average and median forward multiple. Due to the company's strength in one line and lack of diversification worries investors about future growth. Additionally, the company has shown waning popularity for their UGG shoes. UGGs made $1B in 2011. In 2012, that number will likely decline. Revenue from UGGs dropped 11% in Q3 2012 and 0.5% in Q2 2012. The trend down is not positive and is the reason for a lot of the weakness in shares. The question now is, are shares cheap even if the business is not as strong or is more downside on the way.
Older coconuts have a brown outer husk and a hard shell inside that. Inside the coconut shell is a half inch or so of white meat and coconut juice inside that. If the brown coconut sits on the ground for a long time