Friday, April 4, 2008

What about Crox?

I have posted about Crox in the past and now it is hitting the headlines again.  Crox is on the rise with several analyst recommending it as a buy.  The target price is $44.  This makes sense since the company is profitable, utilizes little to no debt and has a positive outlook for sales and earnings.  Yes it is holding excessive inventory but summer is coming and its international business is doing very well.  They are also expanding their line to appeal to more customers, and yes I actually saw a pair of Crox sandals I would wear the other day while shopping at Dicks.  The chart looks very promising this week, could be a break-out.  It is still heavily owned by institutions and volume is staying strong.  I would recommend getting in around 22 if the chart supports a continued run and set a limit to sell at 44, no need to be greedy, as if a 100% return isn’t greedy.

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