Wayyyyy back on April 21 of this year, I wrote an eloquently titled post questioning what the hell Skechers was doing? In their misguided attempt to appeal to everyone, they pulled off the not unimpressive feat of actuality appealing to no one. I wondered if it was "time for me to short their stock?" My answer then: "Probably." What did I do? Nothing.
That's right, I was once again far too much of a wuss to actually put my money where my keyboard is, and passed on shorting the stock. Well, that turned out to be a mistake. According to Google Finance, shares of Skechers were trading for a robust $39.91/share at the time my original post hit the internet. Skechers share price at yesterday's close: $21.73.
If my calculations are correct, that would have been close to a 50% return over a five month period. Not bad.
The lesson: I'm an idiot.
Thursday, September 23, 2010
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4 comments:
I don't mean to rub it in your face (I also missed out on the opportunity), but short sale returns are calculated the opposite way: you would have effectively bought at $21.73 and sold at $39.91, bringing the return to a robust 79%.
So much the better...and worse.
Thanks.
I was going to ask why we should trust the calculations of a self-proclaimed idiot, but Jens has made said comment unnecessary.
The important thing is that I aired on the side of caution in my "calculation."
And if you two don't settle down I'm going to have to delete your comments and update the original figure--thus maintaining my cloak of invincibility!
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