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FOSL - Fossil Group Inc


orthopa

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From https://www.thestreet.com/story/14176443/1/fossil-is-in-a-black-hole-and-will-probably-stay-there-for-eternity-says-analyst.html?puc=twitter&cm_ven=TWITTER&utm_source=dlvr.it&utm_medium=twitter

 

 

"On Monday, the company released a Form 4, which is a Securities and Exchange Commission filing required when there's a material change in the company insiders' holders. What prompted the filing was that Fossil CEO Kosta Kartsotis sold 520,000 shares of the company's stock on Thursday and Friday, which follows the divestiture of 1.074 million shares on May 30. Those sales leave the CEO with 4.426 million shares, wrote the analysts.

 

 

"In Time's Up: 10K Concerns, we outlined our initial concern following the 10K release that the CEO pledged 3.8MM shares in February at roughly $19/share equating to $73MM," wrote Macquarie analysts Laurent Vasilescu and Dan Isaacson in the note. "With the shares now at about $11, we estimate the pledge is in the red by $30MM. (3.8M shares at $19/share minus 3.8M shares at 11). It is our understanding that the pledged shares are with a bank and the bank can choose to sell these shares."

 

 

Macquarie analysts added with the stock trading at about $11 since the end of May, they had outlined in a previous note that Kartsotis would be forced to sell his shares to make up for the lower value of the collateral. The proceeds from the May 30 sale of $12.1 million likely would need to be used for an estimated $30 million shortfall, wrote the analysts."

 

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Mr B,

 

What I meant was If I have an iPhone, why do I choose an Apple Watch over any other smartwatch that is compatible with my iPhone?  Are there functions/capability that the Apple watch has that others do not?

 

Yes for the fitness fanatics, Garmin's line of smartwatches are still the dominant brand.

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What I meant was If I have an iPhone, why do I choose an Apple Watch over any other smartwatch that is compatible with my iPhone?  Are there functions/capability that the Apple watch has that others do not?

 

You need to evaluate them holistically not based on functions/capability because fitting a smartphone into a watch entails endless tradeoffs. For example, as far as I know, Apple is the only one who has an attractive, small watch (e.g. women-friendly). Other watches can offer similar functionality but not in a small device. The System-on-a-Chip is the key differentiator.

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Mr B,

 

What I meant was If I have an iPhone, why do I choose an Apple Watch over any other smartwatch that is compatible with my iPhone?  Are there functions/capability that the Apple watch has that others do not?

 

The addition of LTE is the one unique feature worth having (if it'd work.)

 

Anyone know if Apple fixed the LTE on the watch?

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Mr B,

 

What I meant was If I have an iPhone, why do I choose an Apple Watch over any other smartwatch that is compatible with my iPhone?  Are there functions/capability that the Apple watch has that others do not?

 

You will choose it for the difference in functionality and brand name, which sells at a higher price point and there are trade offs e.g. Fossil hybrids have more limited functionality, don’t need a daily charge like Apple (battery replaced every six months), do not look like an Apple and sells at a lower price point. In some ways you are heading for the same scenario as tradional watches where the movements equate to smartwatch/hybrid tecnology with companies more or less the same, but mainly leading on design/brand name. Not everyone will agree with that view, but its mine and generally Fossil’s view too. 

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Anyone know if Apple fixed the LTE on the watch?

 

Apple released a software update that fixed the issue everyone was reporting on, namely that the watch would connect to "captive portal" wifi networks (e.g. starbucks where you have to click through) and have a wifi connection but no real connection to the internet. Now it only relies on wifi if it can get to the internet. So, if you have your phone on you, it uses that. If you are in range of wifi you've connected to before and that has internet access, it uses that. As a last resort, it connects to LTE.

 

I have one and the LTE mostly works. I routinely wear it to the gym and on outdoor runs without my phone. It sometimes takes a minute or two to acquire a signal if you go somewhere without coverage. I'm guessing this is a tradeoff for battery life (check network less often = more battery), and probably depends on network/signal strength to begin with. The only place this is really an issue for me is the first floor of my old, concrete-and-stone gym, where I sometimes don't have a signal (I could fix this by connecting to wifi but haven't gotten around to it).

 

For a tiny little internet-connected computer+health monitor/coach on my wrist, I'm very happy.

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FOSL seems to be executing extremely well against their strategy.  They are first to market with fashion first connected watches.  Apple and other manufactures are tech companies essentially trying to strap phones onto wrists, and their approach to women's watches is to Shrink it & Pink it.  Only a subset of the functionality is actually useful for the mass market.  FOSL is focusing their offerings around fashion with only the essential functionality.

 

FOSL is also defining the hybrid watch market.  They are basically the only player in this space.  It is growing slowly but there is a long runway for this offering.

 

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  • 7 months later...

The new Fossil watches Gen4 are excellent.  These watches are targeted for women and address their needs. The market for smartwatches has moved into Fossil's sweet spot.  The next 2 quarters should confirm Fossil's leadership position in this market.

Actually just ordered one a few days ago to test. Think NFC a great addition.

 

Decent presentation that went up on their website recently.

https://www.fossilgroup.com/wp-content/uploads/2018/10/FOSL-Sept-27-2018-Investor-Pres-Final1.pdf

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