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
- China’s Leadership: Brilliant or Clueless? | Financial Sense
- More Pain For Biotechs Ahead: Valeant's "Astronomical" Price Increases Take Center Stage; Pfizer Gets Dragged In | ZeroHedge
- Oil Spikes To Highest In Over A Month, As Syria Proxy War Jitters Escalate | ZeroHedge
- Yuan Rising: China Surpasses Japan To Claim Number Four Spot In Most Used Global Currencies | ZeroHedge
- Global Stocks, Futures Jump On Barrage Of Bad Economic News; Glencore Surges, Volkswagen Slumps | ZeroHedge
- IMF Cuts Global Growth For The Fourth Time In 12 Months... But That's Not The Biggest Problem | ZeroHedge
- Southeast Asia’s High Speed Rail Network | Financial Sense
The most relevant financial news and articles from the Internets
- Harvick dominates in must-win race to advance in Chase | Business Insider
- University of Connecticut serving up crickets at food... | Business Insider
- Jordanian MP says son joined IS, carried out suicide... | Business Insider
- Pastor's sermon: 'Violence will not have the last word... | Business Insider
- Europe's highest court could be about to deal a major blow to American tech... | Business Insider
- Reports: VW investigation focusing on development managers... | Business Insider
- The Latest: Nobel medicine laureates helped millions | Business Insider