Hot Penny Stocks – K-Swiss Inc. (KSWS)

Markets have had an impressive couple of weeks. The Dow was at 12,196 at the close on Wednesday. That’s up from a healthy 12,045 a week ago.

Remember – two weeks ago the Dow closed at 11,257. That’s an increase of almost 1,000 points in half a month!

As a result there’s a lot of food for thought out there on the equities. So take a timeout from all that news. We’ve got another company for your radar.

 

QUICK FACTS

Ticker                                     KSWS

Industry                                  Textile – Apparel Footwear & Accessories

Recent Price                          $2.75

Market Cap                             $97.9 m

Shares Outstanding               35.6 m

Average Volume                     215,371

Dividend Yield                         N/A

Website                                  http://www.kswiss.com

 

COMPANY DESCRIPTION

K-Swiss (KSWS) is a sports equipment company. They primarily design, develop and market footwear, apparel and accessories.

On top of their K-Swiss brand are a couple of specialty names. Like Palladium, a brand of footwear for users going to exotic rough locales.

They also have Form Athletics, an extensive line of martial arts equipment.

The company uses a sales force of representatives and sales executives. K-Swiss primarily sells gear to sporting goods stores.

 

FINANCIALS

K-Swiss’ third quarter numbers were released on November 3, 2011.

The company reported revenue of $80.5 million in the third quarter. Up from last year’s third quarter revenue of $61.5 million. This is an increase of 30.8%.  KSWS also reported a net loss of $15.4 million… an improvement year-over-year from a loss of $28.3 million.

As of September 30, 2011, the company reported $37.4 million in cash and long-term debt of $155,000.

 

 KEY METRICS ANALYSIS

Trailing P/E                                       N/A

Price / Sales                                     0.36 x

Return on Assets                            -13.7%

Insider ownership                             1 %

Short Ratio                                        5.6 x

Current Ratio                                    4.1 x

Total Debt To Equity                          8.1 x

 

RECENT EVENTS

Most of the news coming out of K-Swiss is about their sponsored athletes and the occasional announcement regarding their SEC filings.

Their most recent news release is about the Marines Ironman 70.3 World Championship. Three of their sponsored athletes finished in the top 5 of that race. Wearing K-Swiss gear of course.

Around the same time in September they also announced a new ad campaign. The campaign includes well-known trainer Jillian Michaels and comedian Kaitlin Olson.

The campaign was carried out in partnership with Lady Footlocker.

 

MANAGEMENT TEAM

Steven Nichols – CEO

George Powlick – CFO

Edward Flora – COO

David Nichols – Executive VP


STOCK ANALYSIS

 

 

 

 

 

Chart Courtesy of StockCharts.com

 

KSWS’ 52-week low was $2.56 and the 52-week high was $13.04.  Right now the stock is trading at $2.75.  The 50-day moving average is near $3.47 a share and the 200-day moving average is at $6.72.  The company has a market cap of $98.3 million and 35.6 million shares outstanding.

 

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