CROX?
The only thing I knew about Crocs until very recently is that it's share price went down about 50% in one day a month or two ago.
In the last 5 weeks I have been in Kuala Lumpur(Malaysia), Singapore, Fiji, New Zealand & Japan. I was in each place about 6 months ago. Excepting Japan (it's winter) there were an obvious number of people wearing strange, unattractive (my opinion) sandal-like footwear. Being as I thought the footwear stange & therefore noticable to me at any time, it perhaps was not that popular 6 months ago.
Most( can't be sure all) of the sandals were made by CROX.
Any opinions on CROX at this time/price?
Best Answer
4085 points
EthanR answered one year ago …
Technically, the stock is beginning to look a bit better, at least for a short term trade. CROX was a 75 dollar stock in November, and has just been crushed. However, the MACD has turned up from its lows and is not far from the zero line. The RSI has moved above the oversold line and is at 39. The last few days the stock has done very well. However, longer term, CROX is still below the 50 and 200 day Moving Averages. You will probably encounter overhead resistance around 35-36 as the 50 day M.A. continues moving lower. So a trade of 10-15% is very doable at this level. Then we can re-evaluate.
One does have to be impressed with the fundamentals of the stock. They seem to beat the earnings expectations each quarter. PE is a bit over 16. Return on Equity and profit margin numbers are excellent.
The questions with CROX for the long term are:
1) What if the faddish quality to the shoe wears off?
2) What if other shoe designers begin to do the same design for less (already happening)
3) Will CROX expand into other areas of sales?
One thing you have recognized is that the CROX style has an international appeal, and that's a good thing. But as you said, you can't be sure if they were actually the CROX brand or just some cheap imitators.
So I say short term ok, but be wary of future earnings reports. Not sure if the numbers will continue to be as impressive going forward.
