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Savings Experiment: Snow RemovalAs for me, I still support the stock. I see no reason why it cannot double from here. I am feeling generous and want to give back to those who have helped me....With all of the supporters and bulls looking for shares to go to $150, I want to make sure there are plenty of shares available for those who have not yet been able to capitalize. So selling a large portion of my shares is merely an altruistic move to allow these that do not have shares the ability to now have access at these inflated prices. Why should I be so greedy? Since I have sold about 600,000 shares and now have a smaller position (234,243 shares held directly) I fell much better that I have allowed others to enter the "Crox Club". Now there are 600,000 more shares available for others to buy. I really feel good about this.
Now we're in November. Shares of Crocs have taken a hit, losing nearly half their value since the beginning of the month. And predatory securities lawyers have rushed to the scene, filing class-action lawsuits against the company, filled with vague allegations of securities fraud. Given that nearly every company that has the nerve to report a bad quarter gets sued these days, I'm not inclined to read much into the lawsuits.
But there's another question for investors: Should the insider selling that Horowitz was pointing to have been a red flag for investors? According to The New York Times, "The moves by executives at Crocs, which went public in early 2006, are typical of the behavior of senior management after a very successful offering ... Maybe so, but that's cold comfort to investors who bought shares recently but are now walking around with losses that are neither comfortable nor fashionable. Especially when you consider that none of the officers and directors at either company have bought a single share on the open market this year."
I'm still skeptical about using insider trading as a predictor of future returns, especially with a young company that has made so many executives rich on paper -- they want Ferraris too! Ultimately, Crocs will succeed or fail because of its ability or inability to successfully introduce new products to make more than what is an essentially single-product brand.
I'm highly doubtful of their ability to do that so I wouldn't touch the stock -- even if the Crocs insiders bought back all those shares tomorrow.
I'm still skeptical about using insider trading as a predictor of future returns, especially with a young company that has made so many executives rich on paper -- they want Ferraris too! Ultimately, Crocs will succeed or fail because of its ability or inability to successfully introduce new products to make more than what is an essentially single-product brand.
I'm highly doubtful of their ability to do that so I wouldn't touch the stock -- even if the Crocs insiders bought back all those shares tomorrow.
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Reader Comments (Page 1 of 1)
11-12-2007 @ 12:21AM
G. Arnold Williams said...
Let me see now. The horrible insiders who sold their stock in June (and actually DID give up a further doubling of the stock price by October 31) should be publicly flogged for giving away that 100% return on 600,000 shares. They should have known that what goes up, must come down, and if they had just waited til the November collapse, well then, they would have had to sell it for...about what they sold it for 4 months ago. Sounds to me like a desparate atttempt by the author, after having been dead wrong for four months, to find a way to become somehow, right. Not quite. It's a volatile stock, with a still tremendous growth pattern. I, for one, am stocking up on bargain basement, ridiculously deeply discounted, CROX.
12-13-2007 @ 9:01AM
John said...
so generous, to sell stock to let others buy,maybe he would be generous enough to refuse his salary,to help others or give all non-management employees a large raise, sorry he's not that giving, just blowing smoke, besides he doesn't say which crox club he's refering to, could it be back to the $20 club,as before the hype?????