November 22, 2008

Quiksilver Sold to VF Corp?

As all the avid shoutbox watchers will have noticed, there’s a rumor flying around about Quiksilver being purchased by VF Corporation. The rumors have come about after a drastic fall in the Quik share price combined with a company debt of $1.05 billion and difficulty in offloading the loss-making snow hardgoods company Rossignol. Still, my reading tells me that the drastic reduction in share price is not uncommon for surf stocks at the moment – Volcom, Zumiez and PacSun are all way down on this time last year. In addition to this I can’t see why Quik CEO Bob McKnight would be all that keen to sell when one article I read said that the shareprice values the company at less than $235 million, when they had $2.4 billion in revenue last financial year. So, here’s my expert financial advice – get in there, buy Quik stocks while they’re at 0.89c and you have my personal guarantee that you will be rich* by Christmas.

*Note: you might be cash rich – or just ‘richer for the experience’ depending on how things pan out.

by Dave