I have been looking towards the recent quarter announcements at FOSSIL. One of the best things I like about market these days is volatality. Investors have become fearful and impatient and understandably so. But it creates a good opportunity for an "Intelligent Investor".
As I can see already, FOSSIL stock is trading 30% lower yet again in pre-market trading. So it looks as if it will start trading at about $16 a share today valuing the company at about $900 million.
FOSSIL has been selling traditional watches for a long time and this market has been disrupted due to the wearable technology like watches and fitness bands. The company has recently rolled out wearable watches of it's own.
Current valuation of the company as per pre-market price of $16 a share and $900 million market cap would stand at about 0.3 times it's annual revenue and just about 2.5 times it's average operating income in the last 4 years.
I feel very strongly that the company can make a huge comeback through it's upcoming wearables product portfolio and existing distribution in 150 countries in fashion segment.
For me at a pre-market value of $16 a share, FOSSIL is a strong buy.
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