5. VF Corp Buys Decker's Outdoor
We need to put one company out of its misery and I know another company available to do so. The downtrodden and beleaguered company?
Deckers (DECK), the makers of UGGs and Teva sandals, which has swooned from $100 to $39 in the last year. This virtually debt-free company has fallen on hard times because of a combination of much higher costs and a trend that seems tired. You know who resurrects just such brands?
VF Corp (VFC) which took another tired old trendless brand, Timberland, and turned it into an international powerhouse in fewer than 18 months. VF is itching to do its next deal and Deckers is itching to help its crushed shareholders. While I don't expect this one billion dollar and change company to fetch three times its price ever again, as it would have to if it were go back to the old highs, I can see it almost doubling to $60 on a takeout, small potatoes for a global titan like VF Corp which is readily to reload its brand acquiring machine. Unlike all of the other stocks I am mentioning, there is genuine option speculation that this deal is about to occur and the stock's rallied ten percent on it. I say buy some now and then wait for it to cool and buy more as the quarter while not hideous will not be anything to write home about either.
