Wednesday, August 8, 2007

LaCrosse Footwear Inc.

LaCrosse Footwear Inc. is a NASDAQ listed security that has been trading in a range between $11.49 and $20.01 over the past year. With 6,066,100 shares outstanding, a recent price of $20.01 gives a total market capitalization of $124,476,375. While there are certainly larger companies, LaCrosse Footwear Inc. has definitely earned its place in the pack. Last year, LaCrosse Footwear Inc. created $1.02 in earnings for every share outstanding.

LaCrosse Footwear Inc. is currently priced by the market at 19.70 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share in excess of $1 a share, LaCrosse Footwear Inc. could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.