The beauty of the Internet is that news and events can circulate globally in a matter of minutes. The bad news about the Internet is news and events can circulate globally in a matter of minutes. Just ask Crocs (NASDAQ: CROX) about the latter statement. The stock has suffered over an Associated Press article that is frankly -- a crock.
The gist of the AP article was that Crocs harmed a few children on escalators. As a father of five and a grandfather of two, I get kids. I also get kids' accidents. I have spent my fair share of time in emergency rooms with sports-related and household type injuries with my children! The AP article strongly suggested that the Crocs shoes worn by little children was the cause of their unfortunate accidents by catching their toes or feet in the teeth of the escalator. Some have required medical attention including suturing wounds or a broken foot.
To outright blame the Crocs shoes for these accidents is both unfair and pretty easy to do. It certainly has caught the attention of the concerned parents of the world and will cause some to rethink a possible purchase. Everyday life carries risks and of course, as parents, we strive to minimize those risks. If not Crocs shoes, then whose shoes are absolutely, guaranteed safe and escalator proof? None.
The case can be made that with the gripping action of the proprietary resin material in Crocs shoes that thousands, if not millions of potential accidents have been avoided. The case can be made that millions of potentially sore back incidents have also been avoided by wearing Crocs shoes. There is massive amounts of anecdotal evidence that wearing Crocs shoes helps those with lower back conditions. I have not heard if medical science has proven this case, it's just anecdotal.
The story of Crocs has been an overwhelming success.The revenue and earnings numbers have been stunning since the February 2006 IPO. The short sellers have gotten annihilated in this stock as they have never believed the strength of this company. The well-placed AP story has given comfort to the shorts, yet the last four days volume traded has not been extraordinary. That fact alone indicates that institutional shareholders are not selling or paying much heed to the escalator story ... nor should they.
Georges Yared is the CIO of Yared Investment Research.
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Reader Comments (Page 4 of 4)
9-24-2007 @ 1:33AM
Dana said...
Anyone who buys and then wears rubber or plastic shoes out in public needs his head examined. Examined for bad taste. Plastic shoes? I thought only Barbie and Ken wore plastic shoes. This is just one more example of the complete lack of class displayed by the public in general. I'm far from rich but I dress better when I'm mowing my lawn than a lot of people do who go out into public places. A buncha slobs.
9-24-2007 @ 2:37AM
Regina said...
#5: Name-calling and sarcasm weaken your point.
9-24-2007 @ 2:18AM
ariessantos said...
Americans are a bunch of overprotective, whiny, lawsuit-happy pussies. You all deserve your feet to be mangled by escalators.
9-24-2007 @ 2:38AM
Regina said...
#62, that applies to you, too.
9-24-2007 @ 3:31AM
EVE said...
WHAT I CAN'T BELIEVE IS THAT LITTLE KIDS WILL WEAR CROCS. PARENTS MAYBE-KIDS NO! MY PROBLEM IS BEING A DIABETIC I CAN'T AFFORD SORES ON MY FEET AND EVERYTIME I WEAR MINE FOR ANY LENGTH OF TIME I GET A SORE ON MY TOES.
9-24-2007 @ 4:05AM
Pepsimania said...
I am sorry that some kids get hurt. And it is not uncommon for this to happen, or to be reported and a particular item given blame. But is not necessarily the fault of the shoe, or the parent, but the designs of the esculators that are out there. They need to be imporved and child proofed. Like any other item that is a danger, only with this danger, they are able to aim the blame elsewhere. Thus the danger continues, thru shoelaces, crocs, clothing, careless kids, whatever, but not the true problem that exists.
I too wear crocs, and am disabled. I know what its like to have my back eased from them. I know what it is like to take that pitch forward. Tho usually its when I back up. Talk about traction. I know what its like to love them thru the summer, and worry about the winter. Well guess what, I wear them then too. So stop and think, dont blame the products, but the source of the problem.
9-24-2007 @ 4:24AM
noley1 said...
I cannot believe the types of "tit babies" we are raising. I believe it is "harrowing" when you child's foot is caught like it has been but come on. "Johnnie" and "Susie" will be just fine. The "tennis shoes" example is proof! Let them experience life situations.
9-24-2007 @ 4:50AM
Susan said...
I have always thought about buying Crocs. My grandkids wear them. I work in the dental profession. And I am going to go buy a pair. They are supposed to be very comfortable. Escalators scare me on a regular basis. But I can handle them. They are dangerous for alot of people. I have seen people put babies in strollers on them. Let's ban the escalators.
9-24-2007 @ 4:48AM
Cearralyn said...
I have had several different brands of tennis shoes over the years, and many times they have caught on carpet, for seemingly no reason...and I have tripped. I don't care for escalators that much, but when I get off and on I always pay attention to where my feet are at, and I taught my children to do the same. If children have gotten their feet and shoes caught, it is because they are not standing where they are supposed to be standing, or the parent is not paying attention while the child is goofing off. If a child is just standing there on a step, there is no way that he or she can get caught and they should have been taught how to overstep the edge where the step disappears.
9-24-2007 @ 5:48AM
Reese said...
I saw the interview last week with the mother blaming the Croc for her sons injury when getting off of the esculator. If you listen carefuly, she says several times that they were "half way up" when it grabbed the shoe. The main injury was at the front of his major toe (big toe). They show the shoe and she puts her finger through the hole-which is on the inside- side of the childs shoe (she said he was being still and facing forward!!!) And I have NEVER been on an esculator that closes during "the middle" of the ride! In order for this child to have gotten his foot caught where the damage to the shoe was, he was NOT facing forward being an angel! And the steps "collapse" at the top or bottom, depending on your direction, so how did this happen "in the middle of the ride"? It just had too many holes in the story if you paid attention to the details compared with the evidence. Any time anything happens these days, it sems like the first words out of peoples mouths are "I would sue" and unfortunately, they usually do. This is the reason that so many can not afford to have insurance or have such a difficult time winning a REAL case.
Secondly (HEATHER) I am sorry that you have back issues due to work, but you obviously do not have a serious problem and have not dealt with it long. Those who do and especially those who have had to live with that pain for any length of time, do not carewhat a shoe looks like that can offer any degree of relief. I agree with the woman that speaksof the high price of the shoes that she has, yet gets relief from the Crocs, they DO work! There is a differance in some of the cheaper ones, but if you look, you can find cheaper versions that are just as good. I have always been very fashion conscience, but when your pain gets to a certain level, you are willing to for go any of that. My Grandmother has problems with her feet and legs too, but would not try them due to the ugly comments some people made. I bought her a pair and taked her into trying them, and she immediately felt the difference and nowwearsthem all of the time. People really should think through their words and how theyeffect others-before- they speak them!
9-24-2007 @ 8:45AM
Nora Fodor said...
I am diabetic & I also wear crocs, some of the crocs are made for diabetic feet & there are regular crocs, then the imposters. I've had my crocs for several months & I don't wear any other shoes except maybe for winter. I don't see how a toe will fit in the holes of these shoes, & parents or guardians should watch the kids when they go on an escalater. Crocs are very comfortable to wear, even doctors & nurses wear them.
9-24-2007 @ 10:57AM
Ed Kennedy said...
Children 3-6 should be watched carefully on escalators regardless what kind of shoes they are wearing.I am a 74 yr.diabetic and find Crocs are very comfortable.I walk 2-3 miles with my beagles per day and have the first time to fall.
Grandpappy
9-26-2007 @ 11:00AM
Keith said...
This story is crazy! The media has put the spin on this as if the shoe was at fault. Escalators are dangerous to everyone (especially children) no matter what type of shoes that are worn. At what point are we going to hold the parents responsible for the safety of their children? As a child i remember my mother picking me up in the air as we got off of the escalator so that there was no risk of my feet getting caught. The fact that the child was wearing Crocs and that the foot was able to be removed from the shoe so quickly because of the open back probably saved the foot from more serious injury. Crocs should be praised for such a wonderful invention.
9-24-2007 @ 10:35PM
chomp said...
do we really need an instruction manual to be included with shoes, whether crocs or other brands? these accidents happen because of the escaltors themselves, our inattentiveness or carelessness. crocs are the first shoes i've ever actually looked forward to wearing. they are great for the beach, the boat, working around the house or out doing errands and because of this I bought the stock and have gained 40% in less than a year...beat that. crocs are here to stay!
9-25-2007 @ 10:35AM
Ed Kennedy said...
Go #73: We don't need a instrutional manual to buy Croxs.Just buy and enjoy. I bought my first stock in April got the s plit and am enjoying about a 65% gain.Feels good
Grandpappy
9-30-2007 @ 5:30PM
reggie said...
Yeah, some grandfather. That's all I have to say.
10-02-2007 @ 10:33AM
Ed Kennedy said...
Come on folks,wear your Crocs and buy the stock so it will continue to go up and I'll make Money!!
LOL,Grandpappy