-->  Why this shouldn't be trading this low.

1.  First and foremost, the earnings blown out..not even a single
analyst fore casted these earnings at what Heelys made.
2.  Exceeded analysts consensus forecast of $0.28 by a HUGE margin.
3. People thought it is a speculative play... but considering the rate
at which the earnings are growing..I doubt that.
4.  They are growing at over 300%. (The most pessimistic assessment
would be 100% which itself is a huge run)
5.  Considering a 1.44 ( minimum )  again at a 30 multiple (very
minimal for a stock with such banging growth) should at least have us
at $43.2.
6.  Even if you are very pessimistic and consider having a small
growth and expect it to make a $1.6 per share and a 30 multiple will
put you at a conservative $48.
7.  I accept that may be  Mike Staffaroni should have given more
insight into the future considering the investors like us. I think
that was the only mistake and would love that he takes the opportunity
at the BOA meet to play it soft on us and that would obviously do
wonders for the company tooooo.
8.  Do not forget the number of patents we have under our belt  !!!
9.  At $28 and EPS of 1.44 a P/E multiple of below 20 looks like
getting Heelys shoes on bumper sale for Thanksgiving.lol

I would like to see more analysts covering the stock.
Right now only 4 cover the stock with 1 strong buy, 1 buy and 2
neutral when the price was hovering in the 32-34 region. Now after
that earnings report though the JP Morgan guy spoke good about Heely's
it would have been good if they specifically reiterate their rating on
the stock. I would like to see a couple of more analysts starting off
with a buy or overweight untill we have a 40 multiple.
Guys hold on ....Load the truck - in crammer's words.
You may want to talk to him on his show.
I say I'm not going to sell my bunch atleast untill they miss one
quarter's earnings by more than a dime.
IT IS CHEAP VERY CHEAP MARK MY WORDS AND GET IN.

I completely agree with you. I think the largest issue that the street
took into consideration and just applied carte blanche to all earnings
is that they want to groe at "20-25%" in the future. I do not think
they meant this year our growth is going to slow to 25%...especially
when just in the 4th quarter we grew from 15 million to 71.1
million...that is 375% growth...we are not going to al of a sudden
drop to 25%...it is not going to happen I expect to see 1st quarter to
be at $60 million. That will be 328% growth from 1Q 06. at 17% profit
margins that is .36 per share at 28.3 million shares outstanding as
stated in the conference call....that will be a 100% beat of the
analysts estimates. My estimate is based on the statement on the
conference call that they had a backlog of sales of $53 million due to
supply restrictions, which they have said they have corrected. So even
if they just shipped their backlog in 1Q that is $53 million.

Bottomline I think heelys hits the 2008 revenue estimates this year
and with a return of 17%...that is a 1.85 a shares...that is a 60%
increase over prior year earnings. Slap a 30 multiple on it and that
is $55.5 a share. I think starting next year the company starts moving
towards 25% growth and you will see that multiple contract to
25...2008 2.32 in earnings X 25=57.8...if you put a 25 multiple on my
07 estimate we are still at 46.25. by YE...a 65% return from this
point to YE...I would take that....25%IN STOCK RETURN FOR
2008....THESE ARE MY HIGH HOPES!!!

I completely agree with your estimates and I still believe HLYS will
hit $60 in '07. I also think the current sell-off is being driven by
those who got the shares at $21 before the IPO hit the market. With so
much volatility in the market right now it might have made sense for
them to dump the shares and take a quick 50%-80% profit... (don't
blame them, I would have done the same). Add to the mix that March has
traditionally been one of the worst months of the year for stocks. My
point is that "this too shall pass" ... and I'm still 1,000 shares
long at $30 & change and will keep adding to my position ...

You may see short term growth but bottom line, Heelys shoes ARE A FAD.
Just like pokemon cards, kids will forget about these shoes in 1-2
years. Since Heelys doesn't appeal to teens or adults, their business
model is screwed unless they come out with some revolutionary product.