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Crocs: Will Anyone Learn Anything?



November 06, 2007 – Comments (9)

The whole thing is here. I'll post the best hatemail.

Around the office, we often debate which shareholders are the scariest. The Sirius Satellite Radio (Nasdaq: SIRI) crowd is a doozy. Ditto the thick glasses, basement-dwelling multimeter-wielding mob that adores AMD (NYSE: AMD). However, Apple (Nasdaq: AAPL) fans usually top the list: Even when you compliment the company, you get hate mail from select iNutsos for not being adequately worshipful. But over the past few months, the cult of Cupertino has had nothing on devotees of rubber-clog phenom Crocs (Nasdaq: CROX).

The last time I discussed the company, I pointed to some pretty obvious problems, foremost among them that it carried a market cap equal to about 20% of Nike's (NYSE: NKE), while producing not even 5% of Nike's revenues.

The next day, my inbox was full of poorly spelled missives with the usual protests, most of which added up to, "You just don't get it." Sadly, this response is typical for the blurry-eyed followers of a momentum darling, especially one that more seasoned stock watchers have pegged as overvalued.

9 Comments – Post Your Own

#1) On November 06, 2007 at 2:45 PM, capsoregime (60.03) wrote:

Why is it that the most acerbic people responding are normally the least capable of spelling things correctly?  There was an almost 100% correlation on an old board I used to run.  

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#2) On November 06, 2007 at 3:00 PM, kristm (99.72) wrote:

At least Apple and AMD are decades-old companies that have a future... I'd hate to think I had made a fool of myself taking a huge stand for some faddish year-old piece of crap like Crocs.

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#3) On November 06, 2007 at 3:36 PM, EPS100Momentum (73.18) wrote:

You are correct about CROX, its just a fad, already seen this type of fad come in go twice in my own lifetime.

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#4) On November 06, 2007 at 4:31 PM, MRTShorts (97.19) wrote:

This is pretty accurate though. People will defend their hot momentum/trend pick to the death because they have some vested egotistical interest. the whole "I am right about X stock and how dare you think I'm wrong, nevermind timeframes etc" is totally an ego move.

And I dont honestly think you can be a good trader or investor and have ego issues based on individual stocks. maybe overall performace, but not the individuals stocks. 

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#5) On November 06, 2007 at 5:22 PM, ByrneShill (82.61) wrote:

The funny thing is they'll almost always show you a graph with their stocks skyrocketing, without ever taking a second to think the fact the stock has skyrocketed is in part the reason it is overvalued.

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#6) On November 06, 2007 at 7:48 PM, FourthAxis (< 20) wrote:

Screw dat Seths!  You just don't getz it! cRoX is comin out wit all typez of new shooz like crox wit collage colorz an jibletz pinz you stix in your cRocz.  Der will never b any company dat comz close to der patented foamz.  I'll see you at $100 suckerz!

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#7) On November 07, 2007 at 2:46 AM, roadski (71.09) wrote:

Gee, I wonder why Jones Soda was up 7% today.

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#8) On November 07, 2007 at 8:51 AM, TMFBent (99.24) wrote:

"Gee, I wonder why Jones Soda was up 7% today. "

Obviously, it's because everyone who owns it is so smart.

Monkeys think the same thing, by the way. So relax, bagholders! You're no more irrational than a monkey, or a 4-year-old child.

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#9) On November 07, 2007 at 2:55 PM, ByrneShill (82.61) wrote:

At least monkeys are cutes.

And there's only 1 letter of difference between monkey and money, it's gotta mean monkeys are good money managers.

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