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3/9/2010 1:19:45 PM Eastern Time

Slow Walk to Finish Line
By Charles Payne, CEO & Principal Analyst

The lack of volume speaks volumes, but what is it saying? Volume is used as a measure of conviction but the fact is that this magnificent rally has occurred on a complete lack of conviction. It doesn't mean the rally is smoke and mirrors, and it doesn't change the great fortunes of those that have participated. But I wouldn't argue with anyone that says the rally is suspect. This rally is suspect, and that is where the volume comes in as a measuring tool. The economy continues to slump as the powers that be don't appear to have a clue. At the end of recent recessions the stock market continued to falter and the recoveries occurred at a faster pace back then. In addition to punk job growth the chorus for massive declines in commercial real estate grows each day.

Of course, the market is forward looking, and because things are so awful and have dragged on so long I think we could see more and more people pull the trigger. I say go with the flow and stop trying to pick the bottom or wait for a dip or the next election, etc. I guess the thing about this market is the lack of oomph continues to mask a slow (and at times not so slow) march higher.

Long Idea: SKECHERS U.S.A. INC (SKX) @ $32.62
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Trading Parameters
Entry Price	Entry Limit	Stop Loss	Trading Target	Target	Long-term Target	Options
$32.62	see comments	$28.00	N/A	$36	$40.00	N/A
Options Trade Parameters
Type	Option Symbol	Entry Price	Strike Price	Expiration Date
Call	SKX100717C00	$4.80	$30.00	7/17/2010

BACKGROUND: SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of footwear for men, women and children under the SKECHERS name, as well as under several uniquely branded names. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website; in over 100 countries and territories through the Company's global network of distributors and subsidiaries in Canada, Brazil, Chile, and across Europe; and through joint ventures in Asia.

SKINNY: Shares of Sketchers have begun to pick up steam in recent months and are even on track to retest all-time highs, despite the global recession. Sketchers' story is one of execution on both the product and efficiency sides. As a result, both sales and earnings have been impressive, leading to a string of six EPS beats versus consensus in a row. The strong sales results are being driven by innovative products like Shape-Ups designed to tone leg muscles and help lose weight. Although aesthetically unpleasing, the shoes are selling like hotcakes. Meanwhile, efficiency improvements continue to yield bottom line success. Moving ahead, Sketchers has room to grow as it plans to open several new stores this year, including a budding presence in three of the four BRIC nations, Brazil, India and China. Our first price target is $36.00 and then $40.00. Risk-averse investors should use $28.00 as a mental stop-loss.

Key Fundamentals
PEG	Book Value	Institutional Holdings	Price/Sales	Average Daily Volume	Shares Outstanding
0.81	16.059	92	0.98	669K	46.45M
Market Value	Insider Activity	52-week High	52-week Low	Annual Earnings Estimate
1.51B	5 Sales	31.99	5.2	2.54

Analyst Coverage
Sterne Agee- Upgraded to BUY	Susquehanna Financial- Downgraded to NEUTRAL	Sterne Agee- Downgraded to HOLD