Bear case for COLM

1. dividend is insufficient to compensate for inflation over time
2. intense competition (i.e. North Face)
3. margin has deteriorated slightly over the last couple quarters
4. inventory has increased and backlog decreased up to and including Spring 2008 orders suggesting near term future earnings will be flat
5. European division has seriously underperformed the rest of the world, with a 18% decrease in revenue
6. Recent acquisition Pacific Trail has underperformed the rest of the product lines significantly.
7. costs are increasing slightly and will carry over into the next 1-2 quarters, mostly from SG&A plus personnel costs associated with new retail outlet openings
8. Free cash flow has turned negative for the first time since 2006 in Q3