Heelys, Inc. (HLYS)

bclan13 (99.58) Submitted: 6/09/07 5:36 PM : Start Price: $30.03 HLYS Score: -46.38

Very reasonable P/E with high growth and over 50% short interest according to yahoo!

The risk of lawsuits has to be in the price already, and I don't recall rollerblades or rollerskate manufacturers ever being subject to class action lawsuits - the company even sells protective attire which is another growth engine that will only be fueled by the injury hype (kids still want them, parents compromise by buying safety gear). The lawsuits will be a distraction but will fizzle out.

As for cheap knock-offs, I think the brand name is a very important barrier to entry as it has already become the way to refer to a shoe with a wheel in the heel. Furthermore, 15 patents protect the design. Shorts are going to be the ones eating pavement, mark my words.

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