Update Skechers USA, Inc. (SKX)

I am starting to lose faith in Skechers, as have many investors. This is evident by the upper 18 price range the stock carries. I liked the stock to begin with because I felt it was undervalued. The company itself is mediocre compared to the competition, namely Nike and Adidas. I did think that Skechers would manage to obtain more market share than it has, especially on the shape ups fad. But it appears as though the fad is no longer lucrative; orders have been cancelled and the inventory is just too high. The quality of the rest of the Skechers’ shoes doesn’t hold up to par. Additionally, the shoes are priced somewhat high for the quality they offer. I still expect the stock to move up eventually, but I am drastically lowering my target from 33 to 23. I would recommend you to unload this stock within a year or two unless the future earnings reports point in another direction. For now, I say get out at 23, which I suspect the stock can hit within two years.