SKX plunges – See Lemelson Benzinga Commentary from Q2 2015

 

skechers logoOn June 5, 2015 Management announces on the media outlet Benzinga, that the firm is short shares of Skechers, saying of the stock price “the wheels have come off” Management continues, “this company is still probably worth… maybe $60 per share” ($20 adjusted for 3:1 split).  Skechers shares closed that day at $36.59 on a split adjusted basis or $109.77 pre-split. 

For a transcript of some of Management’s June 5, 2015 Skechers commentary click here

On June 6, 2015 Benzinga publishes an article entitled “This mega-hedge fund manager is short Skechers,” and quotes management as saying there would be “a steep decline in value.”

To read the full Benzinga article click here

On August 5, 2015 Shares of Skechers closed at a split-adjusted price of $53.43 ($160.29 pre-split).

On August 12, 2015 Management appeared on Benzinga again discussing the fund’s short stake in Skechers saying “I think they’ll have a precipitous fall” (18 min. 30 sec. mark) and explains that Lemelson Capital Management had continued to short the company.  Shares close at a split-adjusted price of $49.65 ($148.95 pre-split)

To listen to the full interview, click here

On September 25, 2015 Management again appears on Benzinga Pre-Market prep-show discussing Skechers saying of the firm “it’s radically over-priced” and indicates that Lemelson Capital had increased its short position and that the firms “average short price is around $132” ($44 on a split adjusted basis).  Management also states that the firm would “keep shorting” the shares.

To listen to the full interview, click here

On October 23, 2015 Shares of Skechers plunge from $46.19 per share to $31.64 per share, a drop of 31.5% in one day.  Benzinga publishes an article entitled “Lemelson: Skechers still a short after losing a third of its share value”.  The article states, “Shares of Skechers USA plunged more than 30 percent after the company’s third-quarter top and bottom line fell short of expectations,” and quotes management as “valuing the stock in a range of $13-$20 per share,” 

To read the full article click here

On July 22, 2016 Shares of Skechers fall 22.3% from $32.18 to $24.99 per share.

On August 2, 2016 approximately one year after Lemelson says Skechers shares will “…have a precipitous fall,” and approximately nine months after Lemelson values the shares in a range between $13 – $20 per share, shares of Skechers close at $22.88, a decline of $30.55 or 57.2% from the August 5, 2015 closing price.

On October 21, 2016 plunge over 17 percent hitting an intra-day low of $18.81