Crocs Stock Flops After Shock Sock to the Breadbox (CROX)

Some ten months ago, we cashed in on a CROX trade to the tune of 5080%.

And say what?

The time is once again ripe to try on Crocs Inc. for size (NASDAQ:CROX).

Why?

A number of reasons, but most formidably because an upcoming expiry offers a price opportunity we haven’t seen in a long time.

Specifically: a boutique, speculative gearing that gives us a chance to pocket 4900% on a rather modest move, and with a known downside.

How could it be!?

Patience, Ardmore…patience…

Crocs makes foam shoes for inactive people that feel weird.  And that’s apparently an idea whose time has come.

Because sales are booming.

Unfortunately for shareholders, the stock is about to behave in an unexpected fashion—according to our read of the leaves.

After DOUBLING in price in just ten weeks, CROX is now sucking wind and searching for the smelling salts.

Youch!

Fundamentals

CROX’s numbers make for something of a dilemma.

Why?

• On the one hand, P/E is just 13.38, which looks very much like a value proposition in today’s market.
• On the other hand, there’s no Yield on offer, and…
• Price to Book is an orthotically challenged 11.87!
• And if that’s not bad enough, debt problems are giving the stock fallen arches. Debt/Equity is a ridiculous 4.15, and with…
• Analysts’ consensus on growth expected to slow by some 60% over the next five years (particularly from the company’s headline foam offerings), we say there’s little chance the stock will hold up.
• Insiders agree.  In 2022, they were exclusive buyers of the stock through May.  Since August, they’ve done nothing but sell.

On February 15^th management will announce earnings, and it’s for that reason we’re now revealing the best way to position yourself.

Have a look at the chart—

G-d is Great, Jews and Noahides!

Praise His Holy Name Forever and Ever.

With kind regards,

Hugh L. O’Haynew

Follow @HughLOHaynew