Crocs loses less than expected -- time to celebrate!

Revenue checked in at $197.7 million, down from $222.8 million a year ago, but better than the expected $149.9 million. Looking ahead, CROX forecast a third-quarter loss of six to 14 cents per share on sales of $150 to $160 million. The company's CEO John Duerden stated, "As we continue to streamline our cost base, we expect to reduce our operating losses through the balance of this year and return to profitability next year."

With the head of the company forecasting a return to profitability, is this time to invest in CROX? In after-hours trading, CROX was trading above the $5 level, which is a nice elevation from its pre-earnings position in the $4 region. If you are going to make a bullish play on CROX, be prepared to be patient. There is a ton of overhead resistance facing the shares, most immediately the equity's 50-week moving average positioned directly overhead. I'm just not sure that earnings that aren't quite as bad as everyone expected will be enough to propel the equity back to its late-2007 highs.

A main reason I am wary of the stock is that it is retail dependent, and these foam footies ain't cheap my friend. They may be comfortable (at least that is what my brother says), but this reporter isn't about to shell out $49.99 for a pair of olive and orange shoes that are supposed to make my feet feel like I am walking on clouds. I am not sure that a floundering retail company is a great bullish play ... especially in this economic environment. That said, some will say no guts, no glory -- but this guy isn't going out there on guts alone.