Trade Update - Crocs (CROX)
Last week, I wrote that I was taking profits on Crocs (CROX) after a huge run for the stock.
Despite, hovering deep in overbought territory for a while now, the stock has refused to come down. Some of this could be due to the still high short interest in the stocks, which continues to fuel new rounds of short-covering on each uptick.
It also helps to have analyst upgrades, like the stock got today. The analyst from Wedbush raised his rating to 'Buy' and also raised his price target to $54. I don't think I would have put a buy rating on the stock yet, but his price target seems reasonable.
He raised his 2008 earnings estimates to $2.15. So that would imply just a 25x P/E multiple, which is basically in-line with the company's growth rate. This seems doable.
The company also signed another license agreement, this time with Marvel Entertainment, for characters like Spider-Man and the Fantastic Four. They also opened their first U.S. store in Santa Monica. I'll try to stop by over the weekend and let you know my thoughts next week.
no positions
posted by J. Kahn @ 1:23 PM
3 comments
3 Comments:
First:
Get your facts straight.
Wedbush didn't initiate coverage or "upgrade" Crox.
Wedbush REITERATED their "Buy" reccomendation.
http://www.briefing.com/GeneralContent/Active/Investor/TickerSearch/TickerSearchInvestor.aspx
Secondly, and, in my opinion much more importantly, Wedbush CO-MANAGED Crox's IPO.
Wedbush acts as CROX's investment bankers.
Wedbush has an existing position in the stock.
Please correct your ill-informed blog posting.
Amazing to see how well the stock is holding up. I'm also interested to see comments associated with this post as any mention of CROX seems to bring out emotion both for and against the stock. Looking forward to your take on the new concept.
wow, Tony. why so much anger? I apologize, I should have said "reiterated" their Buy rec. Although when you raise your eps estimates and price target, it is pretty much an upgrade. All of those other things you mention are true, but I didn't feel needed to be added to my "Trade Update" post. Those disclosures are for Wedbush to make.
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