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Insiders are also snapping up a large amount of stock in
Deckers Outdoor(DECK), a designer, producer, marketer and brand manager of footwear, apparel and accessories. Insiders are sniffing out some deep value here, since this stock has traded down by over 35% so far in 2012.
Deckers Outdoor has a market cap of $1.80 billion and an enterprise value of $1.55 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 9.79 and a forward price-to-earnings of 8.62. Its estimated growth rate for this year is -11%, and for next year it's pegged at 20.6%. This is a cash-rich company, since the total cash position on its balance sheet is $228.57 million, and its total debt is zero.
The CEO just
bought 10,000 shares, or around $459,000 worth of stock, at $45.90 per share.>>5 Bargain Stocks With High Free Cash Flow Yields From a
technical perspective, DECK is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has been stuck in a nasty downtrend for the past eight months, with shares plunging from over $118.90 to a recent low of $42.16 a share. During that sharp move lower, shares of DECK have consistently made lower highs and lower lows, which is bearish technical price action. That said, the stock has started to reverse that trend and make higher lows and some higher highs. That move is quickly pushing DECK within range of triggering a near-term
If you're bullish on DECK, then I would look for long-biased trades once this stock manages to clear some near-term
overhead resistance at $48.41 a share, and then its 50-day moving average of $50.15 a share with high volume. Look for volume on that move that's tracking in near or above its three-month average action of 1.9 million shares. If that breakout triggers soon, then DECK could easily re-test and possibly take out its next significant overhead resistance levels of $54.88 to $59.07 a share. Keep in mind that we will need to see a high-volume trend above its 50-day to have any chance at hitting those targets.
On the flipside, I would avoid DECK or look for short-baized trades if the stock fails to trigger that breakout soon, and then takes out its near-term support zones at $45 to $43.92, plus its 52-week low of $42.15 a share with high volume. If we get that action, then DECK could slide back below $40 a share if the bears gain full control of this stock. Keep in mind that it's almost always bearish technical action when a stock continues to print new