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rknapton (< 20)

CROX short

Recs

7

June 24, 2010 – Comments (5) | RELATED TICKERS: CROX , DECK , NKE

CROX Short

A former fad company in decline.

Upon this rally in CROX share price over the past year (from just $2.55 to now over $11), CROX makes for a nice short.

The shoes were a fad, and if you don’t think that qualitatively, just look at the numbers for yourself.  Revenues have declined from $847 million in 2007, down to $722 million in 2008, and then down to $646 million in 2009.  Don’t blame anything on a recession.  This is simply the result of 9 year olds not begging their parents for a pair of Crocs anymore, because they just are not “cool” anymore.

So yup, I think the company trading at a market cap of nearly $1 billion is just too high.

I also think the forward estimated that analysts are giving this company are just too darn high too.  They are predicting EPS of $0.69 in 2011.  I think that is absurd, along with their revenue growth estimates to $724 million in 2010 and up to $797 million in 2011.

I know some people love this company and their products… so don’t get all butt-hurt in the comments trying to justify CROX.  Just send me a picture of you wearing Crocs, and I’ll evaluate it and tell you if you look “cool” (the answer will be no).

RK

5 Comments – Post Your Own

#1) On June 24, 2010 at 7:53 PM, NVTreasureHunter (29.27) wrote:

My butt sure hurts...cause I've always hated CROX

All-Time Worst: CROX -255.97

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#2) On June 24, 2010 at 9:50 PM, abitare (62.55) wrote:

GS makes a maket in CROX as I understand it. They can crush a short position at will with HFT and ZIPR

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#3) On June 24, 2010 at 10:01 PM, ragedmaximus (< 20) wrote:

my investing site called for crox short 2 days ago said it broke trend and is heading 2 9 bucks fast

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#4) On June 24, 2010 at 10:05 PM, ragedmaximus (< 20) wrote:

short bp it will be a penny stock soon

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#5) On June 25, 2010 at 11:54 AM, Dobbes (< 20) wrote:

I tried shorting CROX a while back and got burned.  Best of luck to you. 

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