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And that's exactly what's been going on with Deckers Outdoor (Nasdaq: DECK ) for years. Sales have been on the decline, and analysts are abandoning the stock. But there's been a recent surge in the stock price as some investors are hopeful for an acquisition. This rumor been passed around before, when DECK's chances of selling looked brighter. Now, with fading revenues and declining brand strength, the company's still lofty valuations certainly don't justify a buyout. The situation actually feels a bit like Hain Celestial (Nasdaq: HAIN ) did back in September 2015. Back then, buyout rumors helped bring HAIN above $65, but the deal never came to fruition, and shares continued to tumble. Once sales stabilized and shares dropped to current levels around $35, a buyout seemed bit more realistic. Like HAIN back in late 2015, DECK's sales would need to drastically improve or shares would need to come down for a likely acquisition to take place, but since the smart money doesn't see sales improving much, DECK is in perfect position for a put play. Analysts have already begun to lower their price targets on the stock to a consensus average of $53.50 -- below current prices above $54. This is especially bearish considering the fact that analysts are "long biased" and typically project a future value that's higher than current value.
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