K-Swiss?

Sure do! I suspect you get the IBD. If not, they posted a nice article yesterday about KSWS. Here are some highlights: K-Swiss, Inc. Business model: 1) Limit supplies to retailers. This keeps your product out of price wars and keeps your margins high. 2) Keep the product away from mass marketers. Again, this keeps the price high and brand name strong. 3) Keep prices up and higher than you competitors! Again, huge boost to margins and keeps the product "in demand". 4) Use the same style for 37 years with few innovations. I think all of these points are worth discussing. They make this an extremely good company that is worth a look. However, there is one fatal flaw that makes me concerned: the kids love them now but could hate them tomorrow. The fad could fall out of fashion and the whole thing could crater.

Limiting the supply is a good thing. Don't forget that they have a classic "all white" tennis shoe. Believe it or not, there aren't too many "all white" athletic shoes out there! That also gives them a nice competitive edge, especially if they aren't involved in price wars.

I'm scared of the teenyboppers, though. They are a very fickle bunch. They have a tendency to change their minds very quick. If that happens, this one craters. That's the same reason I don't like Hot Topic or Aeropostale all that much. Despite the growth, they are too faddish. They could all be victims of what I call the "One Punch Knockout". If sales fade, they aren't getting off the mat.

The price is rising on higher volume so that is generally a good technical sign!