Crocs, Inc. (NASDAQ:CROX)

It has attractive valuation and very small debt.

Nasty shoes but still selling

Summer's here, and it's time for Crocs to shine! And really -- with a P/E of 17, a growth rate of 25%, a cash-rich balance sheet, and superior free cash flow, how could they not? I might even buy this one for myself.

low peg

Good growth, debt is not an issue. Priced good, not great.

Once upon a time...

One of those 'alienate your friends' fads.

Off of low, Short Squeeze?

Lack of diversification and there's just not a lot of opportunities for growth. Product differentiation is a joke. Easily knocked off.

Plus -- have you ever walked on a wet floor in Crocs? OMG can you say wrenched knee?

Like 'em or not, they are profitable and growing.
http://www.forbes.com/sites/lydiadishman/2012/01/11/how-crocs-moved-from-fashion-trend-to-1-billion-phenom

I suspect that CROX, PSUN and other specialty retail stores may soon see a major decline in their revenue. Both the market and the retail buyers are getting nervous as growing uncertainty leads them to less risky investments and more prudent buying.

I usually try a "buy what you know" approach to stocks and I've had both hits and misses with this strategy. Crocs is currently my greatest success.

My wife bought be a pair of Santa Cruz Crocs for a trip to Mexico in October of 2009 and I thought "Wow. Crocs is now making super comfortable shoes that aren't ugly. I should look into this." So a couple of weeks later, when I saw that Crocs shares had fallen to $1.10 each, I figured I'd give it a shot and bought 500 shares. In July of this year, I decided to sell half of those shares at $26 each. It worked out nicely.

Then last week my wife came back from a business trip with a pair of Crocs lace up sneakers she bought for me. They're basically like Converse All-Stars, but WAY more comfortable. After wearing these around for a week and thinking they were awesome I took another look at the stock yesterday and saw that shares had fallen 37% on the day. Today, I read a bunch of the articles and realized that almost everybody thinks Crocs still only makes those ugly clogs. So, this afternoon, I bought another 150 shares at $15.50 each.

I'm feeling pretty good about it. I figure that once more people get there heads out of their butts and realize that Crocs makes some stylish incredibly comfortable, casual footwear revenue has nowhere to go but up. And that will work out great for me because it not only might make me another thirteen grand or so, but it also might make people's feet more comfortable and that's really a win for everybody.

oversold

The ugly shoe party is over.

Remember the 'fad' label so many attached to CROX? What are they saying now? This company has done a 360 and is headed higher. Positive sales growth, operating margin growth, earnings growth, etc. etc. I could go on and on with positive signs right down the list. Oh did I mention there is going to be some consolidation in the shoe industry? Bound to happen.

Good company

Investors.com 99 Composite Rating

stock with good prospects and favorable history

EC thinks CROX is a great turnaround company that is still under the radar.