These firms believe that the company has successfully developed a business model that capitalizes on the growing outdoor apparel market.  However, they also believe that the company is facing pressure from increased competition from branded offerings and a larger focus by many retail customers on their own private label offerings.  In addition, the company faces a highly promotional retail environment and specific merchandise issues, which the company continues to address.  They also believe that COLM is working through these issues, but do not expect significant improvement in the short to intermediate term.  A better merchandise offering and increased marketing spend should ultimately lead to improved results, although the associated costs, combined with lower sales, will likely continue to weigh on results.  These firms recognize the Company’s strong balance sheet, no debt, and positive free cash flow.  However, with continued earnings decline and a relatively high valuation, they believe that the shares are overvalued.