Fossil, Inc. (FOSL)

The CEO is looking at the time on his Blackberry right now. It shows it is the time to GTF_. And he is. The insiders are dumping their shares faster than the guys at AVIS. Watches may not be as obsolete as newspapers but they're becoming that way.

steady earner

GOOD STOCK

Chairman and CEO both selling like crazy.

While this a down market, FOSL makes products that are of great quality and relatively inexpensive. Therefor they can be part of what we could call a "gift basket" (i.e. products that people like to give away in special occasions.

Chairman Kartsotis just let another 6.5 million of his stocks go.

Historically overperforms the S&P, I do however expect an increase in the share price as it's been beaten down well under ½ it's 52 week high.

Terrible for this economy

They have manufacturing problem due to the fact they do not make quality products.

I once owned Fossil and bought my daughter a fossil watch that she loved. The stock helped me to get started here with a good gain.
I particularly like the ownership issue, they've done a great job. With little debt and much cash, Fossil seems positioned to handle the current economic condition. I think I just talked myself into becoming a stockholder again.

This is a company that has good growth, is largely undervalued, and made the coat that Seth says is ready to rock.

Even a more dramatic downturn in forward business does not endanger the company given their strong balance sheet and cash flow. They will be around for the long haul. Fossil is arguably the number one design, development, and distribution company for watch based product. For the Fossil Brand this product is effectively jewelry that happens to tell time so don't let naysayers who speak of the demise of the wristwatch convince you that the company has a product category issue. Moderate priced attractive time keeping "jewelry" should be a nice gift this Christmas and will be a viable product as long as humans walk the earth.

In addition the company has 20+ year relationships with watch component manufacturers in China and do their own assembly. In the near term the recession in China should allow Fossil to continue to improve on the COGS side of their profitability equation. In the long term they have retooled their flagship Fossil brand, have dialed in their lifestyle accessory concept under this brand, and have Watch Station in their back pocket as multiple brand watch direct to consumer play. Their management and their products have been deployed in the international arena for years and they have long term growth opportunities in Europe and Asia through direct to consumer channels. This is a $3.0 billion company in 3 years with leveraged infrastructure and improved product margins. I likeee!

Positive cash flow year in and year out...the more I look at this company, the more I realize they are much more than just watches. I like this company as a core steady company.

Long term value.

This isn't a homerun stock, which is why I haven't added to my portfolio. But it should generate steady returns for the years to come.

Might take a little longer to realize the gain, but it will come.

Solid numbers even in tough times.

HG recommendation

has outperformed it for the last year
good P/E