Charles Payne s Morning Hotline Report Watch my show: Making Money With Charles Payne Fox Business 6PM

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1 Wall Street Strategies- providing independent stock market research since 1991 through a balanced approach to investing and trading November Charles Payne s Morning Hotline Report Watch my show: Making Money With Charles Payne Fox Business 6PM The Tortoise and the Hare Session It was a wild day on Wall Street. The Dow Jones Industrial Average reached yet another record high on Wednesday as the NASDAQ was getting hammered. It was simply the case of live by the sword, die by the sword. The following key tech names weighed heavily on NASDAQ: (GOOGL) Google (FB) Facebook (NFLX) Netflix (NVDA) NVidia While down volume was two to one to the up volume; still, on NASDAQ, 310 stocks closed at new highs versus only 28 at new lows. On the New York Stock Exchange, the up volume of 2.5 billion shares against 1.5 billion down volume, 310 names hit fresh 52-week highs while only 66 finished the session at a new 52-week low point. The Russell 2000 Index closed at a new all-time high point. It reflects the continued confidence that the GOP leadership will get the job done on the tax reform, especially after a barnburner appearance by President Trump in Missouri to push the plan. Russell 2000

2 A Flip of a Coin? Of course, the wildest ride on Wednesday came in by way of Bitcoin (BTC). If a stock or major index rallied up 15% and crashed 19%, only to finish unchanged, one would say that was a wild year but that describes the last 24 hours for Bitcoin. The cryptocurrency is becoming so hip that Katy Perry asked Warren Buffett about it yesterday. And NASDAQ announced plans to launch bitcoin futures in the first half of next year, and Cantor Fitzgerald is planning derivatives. Fans of Bitcoin point to three keys to its value proposition: Limited Supply of 21 million (there are now 16.7 million mined) Distrust of fiat currencies and corrupt governments (including the United States) Anonymity (in a world of zero privacy) I think cryptocurrencies are going to play a vital role in our daily lives and financial transactions. However, I still have to do some work on all the risks and potential rewards on Bitcoin.

3 Today s Session The brick and mortar survival tour continues starting with Kroger s and Costco this morning. When it comes to survival, this isn t Kroger s first rodeo. Once the company, along with all other traditional groceries, was going to be pushed out of business by Walmart and then they figured it out. The company survived and its shares rockets more than 300% from 2010 to Now the challenge is Amazon and the stock is climbing off the mat again and picking up steam after posting earnings that beat the street driven by stronger comp store sales. Costco posted monthly comp store sales that are remarkable. Comp store sales - Constant currency & without gas US +8.4% Canada +6.3% Other International +7.2% Even Sears Holding is saying don t bury me yet looking at a giant percentage jump out the gate. Other retailers, including PVH, beat and offered solid guidance for the current holiday season. Show me the Money Meanwhile personal income and spending holding steady. Income +0.4% Spending +0.3% in line with consensus even as the rate of savings edged to 3.2% from 3.0%.

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5 LONG IDEA: Deckers Outdoor Corporation (DECK) $75.04 Consumer Discretionary; Textile-Apparel BACKGROUND: Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high performance activities. It offers premium footwear under the UGG brand name; sandals, shoes, and boots under the Teva brand name; and sidewalk surfers shoe, and yoga mat and beer cozy sandal collections under the Sanuk brand name. The company also provides running footwear under the Hoka brand name; and fashion casual footwear using sheepskin and other plush materials under the Koolaburra brand. It sells its products through department stores, domestic independent action sports retailers, outdoor retailers, specialty footwear retailers, and larger national retail chains, as well as online retailers such as Amazon and Zappos.com. The company also sells its products directly to end-user consumers through its retail stores and E-commerce Websites, as well as distributes its products through distributors and retailers in the United States, Europe, the Asia-Pacific, Canada, Australis, Latin America, and internationally. As of March 31, 2016, it had 160 retail stores, including 96 concept stores and 64 outlet stores worldwide. The company was founded in 1973 and is headquartered in Goleta, California. SKINNY: Deckers five primary brands are UGG, Koolaburra, Hoka, Teva and Sanuk. UGG by far carries 80% share of sales, followed by the rapidly growing HOKA brand. The company s financials are looking good, free cash flow of $150mm to over $200mm per year going forward can lead to an even stronger balance sheet. Also, inventories are down and the company should end this year with over to $6 per share in net cash. We see the stock moving to $90 Buy Limit Options PEG Book Value Avg. Vol. Outs Insider Activity Inst. Hldg YH YL 18 Est. MKT June K 31.96M 10 Buys % Peer Review Ratio P/E P/B P/S P/CF P/TB Div. Yield Mkt Cap Short Pos DECK N/A 2.39B 10.83% SHOO N/A 2.57B 4.50% INDUSTRY , , N/A N/A

6 Stifel Reiterated to Buy Analyst Action Telsey Advisory Group. Reiterated to Outperform Susquehanna Downgraded to Negative Disclaimer: All investment entails inherent risk. Wall Street Strategies' research seeks to assist investors in determining when to buy and when to sell to attempt to maximize profits or minimize losses. All final investment decisions are yours and as a result you could make or lose money. Wall Street Strategies, its employees and/or its affiliates and family members may from time to time take positions in the open market or otherwise with respect to the securities discussed. Wall Street Strategies, its employees and/or affiliates do not have stock ownership equal to or greater than 1% of the outstanding stock of the covered company nor does any employee of Wall Street Strategies sit on the Board of Directors of any covered company. Wall Street Strategies is not a broker/dealer, and the firm does not underwrite securities, manage assets or perform investment banking activities. The statements made herein include information obtained from sources believed to be reliable, but no independent verification has been made and we do not guarantee its accuracy or completeness. The statements made herein contain general information and do not constitute an offer to buy or sell any security.