Time To Boot This Stock

(FORTUNE Magazine) Even if those ubiquitous Ugg boots haven’t Timberland Chukka Boots hit your own personal fashion “don’t” list, the stock of the company that makes the woolly mammoth–inspired Timberland Outlet knee-highs probably should. Since September, shares of Deckers Outdoor (DECK, $28) have soared 180% on the heels of sudden demand for its UGG boot line. Sported last year by actresses like Pamela Anderson and Sarah Jessica Parker, the sheepskin boots were prized among the fashion forward, who paid up to $185 for a pair. In the first quarter of 2004 sales climbed 23% higher than a year ago, to $44.3 million.

Both the boots and the stock, however, suffer from overexposure. Decker’s now trades at 32 times its trailing earnings, which is substantially pricier than footwear foes like Reebok (P/E of 15) or Timberland (P/E of 18). Meanwhile, short-selling interest in the stock has risen to 1.5 million shares–that’s 15% of http://www.timberlandbootssking.com/ its outstanding shares, or five times its daily trading volume!

LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer.

Morningstar: 2012 Morningstar, Inc. All Rights Reserved. Disclaimer

The Dow Jones IndexesSM are proprietary to Timberland Roll Top Boots and distributed by Dow Jones Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM 2012 is proprietary to Dow Jones Company, Inc.

LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer.

Morningstar: 2012 Morningstar, Inc. All Rights Reserved. Disclaimer

The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM 2012 is proprietary to Dow Jones Company, Inc