CROCS released a report by the accounting firm Deloitte & Touche LLP that states they're in danger, girl. Their stock is down 19 percent and last February, they reported a loss of $183.6 million. The year before, they posted a profit of $168.2, so the company isn't doing well. They replaced their CEO and cut costs in hopes that they are able to swim out of the red this year. Run to the mirror, smile wide and then cackle like CHERYL BURKE about to cast a black magic spell on of her contestants. That is my face right now. But seriously, I don't want a shit load of whores to lose their jobs, so I have an idea. Obviously, the people of the world have stepped out of the fug cloud and decided they no longer want to degrade their feet with that trash, so CROCS has to change things up. They already have all that plastic, so the obvious move is to get into the DILDO business! All they have to do is drop the R and there's their new company name! IN THIS ECONOMY, almost everyone is getting fu.ked, so we might as well get fu.ked with a bright, shiny rod of plastic. Here's CROCS (not cocs) lover Rosie with Kathy Griffin and Gloria Estefan in Miami yesterday. http://dlisted.com/node/31243
on their last two conf. calls they have said they had 52 mil. in cash ; so why is the debt news SO big and the credit extension?
IMO, the problem is that Croc's business model is fundamentally flawed. I had a chance to look at the shoes they sell and they are nothing but pieces of rubber shaped into shoes. Even if the economy does recover, people are eventually going to realize that paying $50 or even $20 for a piece of rubber is not worth it. You can fool some of the people all of the time, you can fool all of the people some of the time, but you can never fool all of the people all of the time.
As I said back in our original story, valuation will always be a concern, and sure enough, shares are trading at 80 times 2006 earnings. But I've maintained that Crocs' valuation is justified by its amazing growth rate (as well as the scarcity of growth in the footwear sector). The company is on track to post a 143% increase in earnings during 2007, putting its 2007 multiple at a much more reasonable 33 times earnings, 2008 price target 200. http://www.thestreet.com/story/10386564/1/small-cap-spotlight-should-you-keep-wearing-crox.html
Crocs was finished in 07. You will end up seeing the last boxes of stock being liquidated by dealers on Ebay by 2012.
they were finished when the knockoffs came out end of story..those were the easiest shoes to imitate..
Any Macro Trader worth his title can identify fads when they see them, CROX was classic. Another was HLYS (Heelys), Hansen Natural Corporation (HANS), Deckers Outdoor Corporation-remember UGG boots/Teva sandals (DECK), how about Whole Paycheck(Whole Food Markets) WFMI ? Marriage of CONSUMER FADS & Nasdaq listing makes a Short Seller happy Unfortunately most people are after instant gratification so will probably never get to short something till its down 80-90%. Never get fixated on a single market dynamic or trading style, be open minded and always remember one thing, ".....Chief Executives always lie, always...."