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No. of Recommendations: 2

I like SKX stock. I also own the shapeups shoe. I dont particularly love them or anything and wont be buying the shapeups again. I know a lot of people who like the shapeups. I feel, even if the company will have to give back some of the revenue this year that they earned last year due to heavy shapeups fad, that is fine. I know, short term traders will kill the stock if that happens, but I dont think its a big deal, as long as the more sustainable regular shoe category keeps getting better. I know it has had done better each year with the sales shooting up last couple of years due to the shapeups.

My concern however is their, they seem to be wasting too much money on advertising especially the shape ups. I hope we dont end up in a case of bad execution. I know you mentioned that their CEO is a old hand and very experienced.

I also know you like DECK. DECK is much higher multiple though. I was wondering if I could request you to identify which one is better, and why? When is the higher P/E multiple justified? I know the obvious answer is if the growth is higher. But the question is, would you choose a 10 P/E and 8-10% growth or 22 P/E with 12-18% growth. What is the right answer?

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