How many shares of Crocs really exist?
By now you've all heard that CROCS, Inc. (NASDAQ:CROX) had a horrible day today with shares falling off the map by 35% pushing the stock price down $26. What's crazy is that number of shares trading hands today, which as of 6:01 PM ET is at 60,248,546.
Fellow Masters, there are only 81.55 million shares of Crocs out there today, how is it possible that 74.879% of all the CROX shares in the world just passed through the gates in the last 8 hours? Here are the stats on Crocs' shares:
|Average Volume (3 month)3:||5,638,420|
|Average Volume (10 day)3:||5,700,900|
|% Held by Insiders1:||16.71%|
|% Held by Institutions1:||80.40%|
|Shares Short (as of 10-Oct-07)3:||16.42M|
|Short Ratio (as of 10-Oct-07)3:||4.3|
|Short % of Float (as of 10-Oct-07)3:||21.40%|
|Shares Short (prior month)3:||15.83M|
Naked short selling, maybe?
Wall Street really freaked out after Crocs reported Q4 revenue would be around $820 million to $830 million, which is actually up from its prior forecast of $810 million to $820 million. But the analysts were expecting 2007 revenue of $835.7 million and thus the crushing blow to the stock today.
Most of us Masters wouldn't touch Crocs shares with a ten foot pole before the call but now that the worst is over, we're thinking about it.
Crocs shares were overvalued, no question, but now that reality has set in, it's not all that bad for investors waiting in the wings.
Crocs 2008 earnings and revenue is projected to be 35% to 40% over projected 2007 levels. That implies earnings of $2.62 to $2.77 a share, and revenue of $1.11 billion to $1.16 billion. Of course the analysts want 2008 earnings of $2.56 a share on revenue of $1.13 billion, but come on, these guys sell plastic shoes made in China that probably cost 35 cents to make. In addition to Crocs being the most overpriced piece of plastic to be worn by humans-to-date. Keep them clear of escalators unless you want your foot ripped off at your local mall. It's true, or at least it's what the media wants you to believe. Feel like reading a dumb article on the subject? By all means, click away -- ABC News: Crocs Can Pose a Danger on Escalators
The panic is over and if you think Crocs can still pull decent numbers going forward, now is the time to act.
Contributor at TheStockMasters.com
Disclaimer: The Author does not hold any positions or shares in the securities mentioned in this publication.
Our Original newsletter that has enlightened our subscribers for over a year. It contains What to Buy, What to Sell, and Market Commentary. We have a 17.5% return since October 2006 and the average wait for a return is only 3.61 months and we have the track record to prove it (click here to view Master Picks track record). We've had great feedback, and in turn have already created a unique following of thousands of Stockmasters. Our asking price is only $45 for a 12 month subscription.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Stocks, Bond Yields Drop After Rosengren-IBM-Oil Triple-Whammy | ZeroHedge
- SEE ME | iBankCoin.com
- The Big Skew by Big Blue | iBankCoin.com
- The Pentagon Will Use 30 Person "Quick-Strike Team" To Deal With Domestic Ebola Patients | ZeroHedge
- EMERGENCY ASSHAT AWARD: COLLIN GILLIS | iBankCoin.com
- Oil Tops $83, Gold Over $1255 As Commodities Spike Higher & Riyal Slides To 2009 Lows | ZeroHedge
- Neutralized into the Bell | iBankCoin.com
The most relevant financial news and articles from the Internets
- Teco Energy (TE) to Sell Coal Mining Subsidiary in $170M Deal... | StreetInsider.com
- Apple Beats On iPhone Sales, But iPads Aren't Looking So Great (AAPL) | Business Insider
- IBM To Make A 'Major' Business Announcement Tomorrow | Business Insider
- Lions Gate Joins Online Video Party in Deal With Tribeca | TheStreet.com
- UH-OH: The New Barron's Cover Looks Bullish | Business Insider
- Stark media divergence for US conservatives, liberals | Business Insider
- THE WEEK AHEAD: Apple Earnings, Twitter Tries To Win Back Developers (AAPL, AMZN, YHOO, MSFT, AMZN) | Business Insider