Here's a look at 10 loser stocks and what you might want to consider doing with them before the tax year is up.Deckers has made a name for itself in the fashion world with the popular line of UGG boots.DOutdoor Corp. (DECK), the company that owns the UGG brand, has been a Wall Street darling for nearly two decades now. The stock is up a mind-blowing 2400% since the company announced its intention to buy UGG in June 1995. Shares have doubled this year alone.So is now the time to bet against Deckers? After all, fashion is arguably the most fickle business out there and trends can change on a dime.men's Hilgard
That's exaggerated in the shoe business. Remember when Crocs (CROX) were all the rage?Crocs has had an admirable comeback this year. Its stock is up almost 200%. But shares of the plastic shoe maker are still trading over 75% below the all-time high they hit in October 2007.
But if you look at the fundamentals for Deckers, it's easy to understand why investors are so excited. Earnings have increased at an average of 30% a year for the past five years. Analysts are forecasting that profits will rise another 24% annually, on average, over the next few years.With that in mind, some analysts said that Deckers still looks like a good stock to buy now. Sam Poser, an analyst with Sterne,men's Butte
Agee & Leach in New York, said that investors should no longer dismiss Deckers and the UGG brand as mere footwear fashion fads."When people think of UGG, they tend to think of the iconic boot. But there is so much there now, including slippers for men and kids and water-proof shoes," Poser said.
He added that Deckers also owns the Teva brand of sandals. That business only accounts for about 5% of the company's total sales (UGG makes up a whopping 92%) but Teva has enjoyed a strong rebound lately. Teva sales rose 52% in the third quarter.Another positive for Deckers is it looks like short sellers are slowly giving up the fight against the stock, a possible realization that Deckers is for real and is not just another bubble waiting to burst.As of late-October, the percentage of available Deckers shares being held short was about 8%.men's Driskell
That's way down from a level of 15% to 20% a few years ago, Poser said.
There's another good reason the shorts may be throwing in the towel on Deckers. The stock still only trades at about 17 times 2011 earnings estimates.That isn't exactly a dirt-cheap Payless Shoe kind of valuation. But it's not a ridiculously sky-high Manolo Blahnik type price for the stock either -- especially given its strong growth potential.Still, investors should always be somewhat wary of hot momentum stocks. And if you've owned Deckers for a long time, it may not hurt to take some money off the table -- or even completely cash in.men's Hartsville
That's exactly what investment firm Al Frank Asset Management of Laguna Beach. Calif. just did. In the company's Prudent Speculator e-mail note to clients Friday, analysts said they "reluctantly said goodbye" to Deckers.