NEW YORK (TheStreet) -- What a wonderful day for investors who own shares of Deckers Outdoors (DECK). Shares rocketed 8.6% higher on Monday to close at $33.59. It was a great day to own stocks, gold, energy and just about everything.Another upside performer was a company whose shoes I wear almost every day. Nike ( NKE) rallied over 4% to close at $96.32. Oh happy day! Even though I don't own shares of NKE, I'm happy for the Nike shareholders who will experience the benefits of an important announcement the company made on Nov. 15: The Board of Directors approved a two-for-one split of both NIKE Class A and Class B Common shares. The stock split will be in the form of a 100% stock dividend payable on Dec. 24 to shareholders of record at the close of business Dec. 10. That means it's not too late for you and me to participate, even though it's 10 days before NKE announces its results from its last quarter on Dec. 20. Upon completion of the split, the outstanding shares of NIKE Class A and Class B common stock will increase to approximately 178 million and 720 million, respectively. The company expects its common stock to begin trading at the split-adjusted price on Dec. 26.
There's more good news for NKE shareholders: The Board of Directors also declared a quarterly cash dividend on the company's outstanding Class A and Class B Common Stock of 21 cents per share, on a post-split basis, payable on Dec. 26 to shareholders of record at the close of business on Dec. 10. The dividend represents a 17% increase over the previous split-adjusted quarterly rate of 18 cents per share. This is the eleventh year in a row Nike has increased its annual dividend, over which time the dividend has increased by a factor of almost seven.
Not exactly a pretty picture unless the year-over-year EPS growth is about to pick up significantly. That may or may not happen, but I have an idea that could be accretive to earnings and may accelerate the upward price momentum of NKE shares. Jim Cramer's protege, Dave Peltier, finds you Stocks Under $10 picks with explosive upside potential. See what he's trading today with a 14-day FREE pass. Drum roll please, and the band plays "dah-dah"! My brilliant idea is for NKE to quickly and stealthily offer to buy Decker Outdoors while it's still a relatively inexpensive stock. Since NKE will be increasing its float with the stock split it can offer a part cash, part stock deal to DECK shareholders. Let's pause to look at a chart similar to the one I amused you with above. DECK data by YCharts
Also a very gut-wrenching picture, especially for beleaguered DECK shareholders, and the solutions to the nose-diving EPS are not readily apparent. In the most recent quarter ending Sept. 30 DECK had an operating margin of 16%, a price-to-earnings-to-growth ratio (PEG ratio) of only 1.19, and too much debt ($275 million).