I think the stock is a terrific buy at these levels. The bad news is already out, a positive announcement re beuaty division will be forthcoming which will lift stock. Also, other fashion/retail stocks are also hitting their 52 week lows now, so this is the time to BUY, not sell. Remember, buy at the bottom when things look bleak. Another positive is that short interest is high in DK, so any move upward will convert those shorters into buyers. There are only 10 mil. shares outstanding so it doesn't take much to boost the stock a few points.
At current price, DK is selling at less than 1x revenues. That's bullish. And finally, Karan has some powerful friends (from Prez Clinton to Willis/Moore) who can be counted on buy shares to help boost price back to IPO level. Don't think that Karan will not do what it takes to get stock price up--after all, in the fashion biz, image is everything!
Anyone other DK investors out there? |
