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How are investors able to make money off the perfect storm scenario I have constructed? Sure, you could always go with the tried and true boot play, Decker's Outdoor. My channel checks have indicated new and classic Ugg boot styles, in addition to cold weather accessories, are flying off the shelves at leading department stores and Ugg's retail stores. Columbia Sportswear may be worthy of a glance in view of its strong balance sheet and exciting product line.

But, the valuation on the stock is too rich for my blood.


Is everything going completely right at Timberland? Not necessarily, but I think the market has baked that into the stock's valuation. The company's classic yellow boot still casts a shadow over the successes being realized in other areas of the product portfolio.

It's a sluggish sales category for Timberland despite management putting greater resources behind the product's design and development. The positive here is that Timberland's management has finally gotten inventory of the product under control. Higher leather and transportation costs inand continued ups and downs in women's boots, are also call outs.

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So where does my optimism on the stock arise? Where Timberland boots are sprouting up: If you do not follow Timberland as closely as I do, it's natural to reason that the brand remains one stuck on the shelves at Sears SHLD Times have changed, however Although Timberland's.

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The Counterpaine chukka sells for a. Timberland is quietly changing the perception of its products in the marketplace. Retailers appear to be listening, and they only listen if the product is designed correctly for trend and the consumer is buying. Timberland's Asia business is profitable and growing While others in retail are operating at losses in Asia as they build infrastructure and giant flagship stores, Asia for the ninemonths ended October 1,posted a strong The company has 95 stores in Asia, and CEO Jeff Schwartz during a recent trip to China stated his intention to double the store base in the country.

Timberland products sell at a premium price in Asia based on my observations.

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In any investment, there are associated risks. As I mentioned, pockets of Timberland's product portfolio are moving along sluggishly, product costs will rise inand a new ERP system is being implemented that may trigger minor disruptions. However, with identifiable growth levers in the business product wise, a lean operating expense base post restructuring, and a higher margin European business being exposed to favorable weather for boot sales I think nearterm earnings catalysts exist.

I can not help but to think consensus forecasts are too low on Timberland as all the analysts, including yours truly, rate the stock a 'Hold' or a 'Sell'.