Play Deckers for a Bounce: Jon Najarian

Thursday, 26 Apr 2012 | 6:59 PM ET

Does that 16% after hours decline in Deckers leave you itching to make a move?

Fast Money Trader Jon Najarian thinks it should. With shares down so sharply after earnings, he thinks it due for a bounce on Friday.

Investors went running for the exits after Deckers reported lower-than-expected quarterly results and cut its full-year profit forecast due to rising product costs.

Also the company said the warm winter had dented demand for the company’s signature UGG brand boots.

Looking at the numbers, first-quarter profit fell to $7.9 million, or 20 cents per share, from $19.2 million, or 49 cents per share, last year.

Analysts had expected the company to earn 25 cents per share on revenue of $246.5 million, according to Thomson Reuters I/B/E/S.

And although the results may warrant a decline, Najarian thinks the decline has been excessive.

Despite results, “Deckers deserves to be at least a $60 stock,” he says. “At $56, I just don’t understand why anyone wouldn’t want to own it.”

But he adds it's a short-term trade. "I'll probably get out by lunchtime, Friday."

Amazon Shares Surge on Earnings
Dissecting the day's major business news, including Amazon's blowout earnings and Deckers shares plunging 17%, with the Fast Money traders.

* You can find our conversation with Jon Najarian about 7 minutes into this video clip.

Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Apr 26, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Jon Najarian is long DECK; Jon Najarian is long EXPE; Tim Seymour is long AAPL; Tim Seymour is long BAC; TIm Seymour is long CSCO; Brian Kelly is long SPY; Brian Kelly is long USG; Brian Kelly is long IWM; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Keith McCullough is long GLD; Keith McCullough is long XLU

For Keith Goddard
Keith Goddard is long SPLS
Keith Goddard is long AMZN

For Peter Nesvold
Nothing to disclose

For Michael Pachter
Wedbush Securities makes a market in the securities of NFLX

CNBC.com with wires.

  Price   Change %Change

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report