3/13/25 - $deck - Rental book3/13/25 :: VROCKSTAR :: NYSE:DECK
Rental book
- ppl ditch their shoes and go homeless chic in a recession, right?
- look. of all the shoe names, this is the only one w the best growth, economics etc. etc.
- but what's probably SHTF 20% case low? 7-handle. instead of high $5s EPS, you probably end up near $5 and so instead of 20x PE you're at 15x (remember the mkt looks fwd, so you have higher EPS and multiple should re-rate). at that pt we're at $75.
- do i think we get there? no. i don't.
- is $100 possible? test of high $90s? sure.
- is the stock a buy here? yes
- do tariffs matter? yes
- so i've added it as a 3% size to my rental book. i am comfortable w these products. it's not an AI-risk issue. mgns and ROIC is solid.
- so Bot decent size here and am in the process of selling the $115C for june this yr at about 15 bucks. this allows me to breakeven if my $100 call is right. and i would love to own the stock there or below and re-rent or keep. and if we just run... that's about 11% yield for 3 mo of what i consider to be a fairly defensible biz and superior to cash and allows me to sit tight and lock away some likely low vol gains as the market chops on any whim of someone sneezing.
so. welcome to the rental book NYSE:DECK :)
V