Heelys is no Crocs

Originally published in Charting the Market 7/23/07

Shares of Heelys (HLYS-Nasdaq) continued rolling downhill on Monday. Shareholders might be wondering if Robert Baird’s initiation last week with a “buy” rating will ever get any traction. The stock has come off several points since, despite the potential to “transition into a lifestyle brand by expanding its apparel and accessories offering, as well as introducing and developing non-wheeled footwear.” Although Baird will no doubt prove prescient on Heely’s ability to lower their dependence on wheeled footwear from 98% of revenue, slapping a $47 price target on the stock just strikes as comical. After all, Milwaukee is better known for beer than sober financial analysis. We don’t have a position but you know where we stand on this one.  no position

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