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Deckers Outdoor - DECK - cls: 25.88 chg: +1.42 stop: 23.75

Company Description:
Deckers Outdoor Corporation builds niche products into global lifestyle brands by designing and marketing innovative, functional and fashion-oriented footwear, developed for both high performance outdoor activities and everyday casual lifestyle use. The Company's products are offered under the Teva, Simple and UGG brand names. (source: company press release)

Why We Like It:
We like DECK for its bullish technical breakout over resistance at the $25.00 level and its simple 50-dma on volume way above average. It is true that DECK has been subject to a number of takeover rumors and word was that another rumor resurfaced today but we're not buying the rumor. What we do care about is that today's high volume breakout over resistance could spark a short squeeze. DECK only has a 10.4 million share float and the latest data put short interest at 34.9 percent of the float. We're willing to go long here at $25.88 but would prefer to buy a dip back toward $25.00. Of course if a short squeeze does occur DECK may not see a dip any time soon. We think it's also worth noting that today's gain pushed DECK's P&F chart into a new buy signal that now points to a $35.00 target. We do not plan on holding over DECK's earnings report. Our target is the $29.50-30.00 range.

Picked on June 22 at $25.88
Change since picked: + 0.00
Earnings Date 07/21/05 (unconfirmed)
Average Daily Volume: 753 thousand

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