(Halloween News) Lessons for investors from the Crocs debacle - BloggingStocks
After a drop of around 40% in trading this morning, shares of Crocs have fallen below their IPO price — after closing at a split-adjusted price of $12. I disagreed with the notion that Crocs was a strong brand — clog-like sandal shoes might be big sellers but I didn’t think they would ever be cool in a way that would allow the Crocs brand to sell other products. Of course you should expect insiders to sell some of their holdings to cash in on their newfound wealth — you can believe in the long-term future of your company and want a house made of solid gold too. The growth projections struck me as being speculative and irresponsible at the time and, in a press release issued last night, Crocs projected an increase in domestic sales of 13% — not bad, but not the stuff of the next Nike. Being from Hawaii and residing in San Diego, I don’t claim to have a monopoly on cool, but I could tell that this was one fad that just had to die. I am so glad this stock is tanking, the only downside I can see is that they will probably no longer be able to sponsor the AVP tour (actually, that may be a good thing for volleyball’s image). More Halloween News