No. of Recommendations: 0

Thanks for the thoughts on Fossil. I like your approach to inventories analysis. I do think your estimates are way to conservative. Fossil brand watches are sold at department stores like Sears under the Diesel brand. They are sold in higher end department stores under the Fossil brand. You can find Fossil watches in nearly any watch store, and frequently they occupy the largest shelf space. Their watches are particularly popular with younger consumers. Fossil also sells eyeglasses, which are gaining momentum, as well as clothing. The foray into retailing is very conservative. I believe they are opening only six stores worlwide. Fossil's business plan is to build a brand, not to manufacture a commodity. They are currently in the brand building stage and have yet to really establish their brand name. This is clearly the greatest business risk associated with the company. What I like about Fossil, however, is their coservative financing. This is not an internet company that is going to bust the bank trying to build a brand in a day by running a Superbowl ad.

Clearly there is more digging to be done, but my preliminary investigations lead me to believe that a rare opportunity could be presenting itself.

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