Surviving

Surviving while watching Survivor. I had said I wouldn't watch this season, but here I am. Kind of a yechy day in the market for me. Down about 1/2 a percent.

FDG did go up nicely, I think people begn to do the same math I have mentioned the past several days about dividends for 4+ years vs the sharp drop.

The only newsworthy item was CHKE announced their earnings (Cherokee Inc. Reports Record 3rd Quarter Fiscal 2007 Results).

While CHKE was relatively flat in sales and income, I did like a couple of points:

• On November 1, 2006 Cherokee Inc. received a payment of $33.0 million from Iconix Brand Group Inc. ("Iconix"), pursuant to the terms of the Termination and Settlement Agreement entered into by Iconix and Cherokee earlier this year. In addition, Cherokee also received payment of $900,000 of past royalties, representing the unauthorized deduction previously taken by Mossimo Inc. ("Mossimo") from royalties due to Cherokee in its fiscal 1st Quarter. Both the $900,000 of past royalties and the $33.0 million termination payment (the $33.0 million will be treated by Cherokee as one-time revenues), will be recognized as revenues in Cherokee's fiscal 4th Quarter.
• Top-line growth has been decent too, averaging about 8.6% on average over the past five years. Cherokee released fiscal third-quarter results today and revenue grew only 5.3%, but international growth opportunities, particularly with Tesco and Zellers, are offsetting falling royalties from Target(NYSE: TGT) that account for close to half of total revenue.