I'm considering a long entry and observing the stock for a few more days and see how it behaves. Concentrating mostly on moving averages. Such a massive gap down usually isn't followed by a rally but might recover gradually if fundamentals support it. And I love its fundamentals. Moreover the price bounced back at two resistance lines telling me bulls don't want to fight back just yet.
Im sitting on a hefty loss now but will ride it out. It took a huge hit and will take time. I do think we will be back near the $60 level by Feb though and guidance forward there will be very important. If they maintain or slightly raise the 35-40% growth rate I think the stock moves back near 52-week highs somewhere next Spring. At the very least, expectations will not be near as high next report.
This baby was heavily manipulated A/H and followed it up the next day. After earnings were released, the initial reaction was negative bur ergo, the retail crowd jumped in and started taking it up. The pros or big time thieves and manipulators were sitting back licking their chops. The statistics: Immediately after earnings were reported the stock dropped to a low of $57.00. That is when the retail gang jumped in and took the stock up to $65.00. Now our wall street manipulators jumped in with relish and crushed the stock to a low of $55.15. However, they weren't done yet. Who said MMs are not sadistic. They had to save some of their masochistic pleasure for the morrow. Poor retail started buying again and took the stock back up to $57.75. What happened the next day has been well chronicled. All the lambs waiting to be taken to the slaughter house were well and truly slaughtered. Do I think the stock deserved to be crushed in this fashion? Absolutely not in light of their earnings which were not bad by any stretch of the imagination. Alas, What I think is pointless. The manipulators - where they want to take the stock - is what matters.
sorry mid life guy, when things are never better, is when the trend tends to change. I have no position or care about almost all momo stocks, but when they break, they usually stay broken for quite awhile.
The drop in stock price was overdone. Even though Crox came a little short in sales it was still triple digit growth in revenues. ALSO, 60% gross profit margins... higher than 58% or so last year. Tons of new products were released this year and it will take time to get out. Crox has not even began any marekting campaign, it is mostly word of mouth and such and they are close to $1 billion in sales. With deals with NBA, MLB, Nascar and NHL and Disney there is more potential. They are selling winter shoes and dress shoes as well as ugly rubber slippers. Estimates going forward were revised higher for this year and next year. I think at $47/$49 it is a buy for the next year going into next summer. It will have some volatility but for long-term buy and old or long-term calls going out 6 months or so, it could be a nice value play given the huge drop in price. The quarter was not horrible, just came a little short on revenues but was still over $850 million. Not bad for a rubber shoe company. The hype might dwindle someday but not for the next year. Many nurses and chefs swear by the shoe. I think it is definitely an interesting value play with obvious risks since it is retail, but stock could be back to $70 by Spring for long-term hjolders. I may get some long -term options on it this week and sit on it.
Very well said Option. I coulden't agree more. I think the Q4 report may be a bit weak (Crocs did give low guidance for Q4) but the guidance forward in that report will be what moves the stock IMO.
The landscape is littered with fashion/retail plays with an ever increasing low barrier to entry. Do not kid yourself if you are a long term holder.
Just buy a pair of these and tell me if you have ever had a more comfortable shoe in your life. It literally baby hugs your feet into soothing comfort. http://www.amazon.com/Crocs-Unisex-...35254?ie=UTF8&s=apparel&qid=1194151366&sr=8-1
midlife: are you kidding me? The barrier to entry is what...plastic?? Ok let me take a wild shot in the dark here..you just got in and are down big?