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
- Russia Threatens Retaliation To Sanctions, Announces Support For Crimean Referendum | ZeroHedge
- The Stock Market’s New Normal: A Wall of Worry | Financial Sense
- Warning Shots Fired At OSCE Mission In Crimea; Russia Warns Of Treaty Force Majeure Over "Unfriendly NATO Threats" | ZeroHedge
- New Spy Technology to Spawn Oil Revolution | Financial Sense
- Will Emerging Markets Come Back? | Financial Sense
- "No Inflation" Friday: The Dollar Has Lost 83.3% Against... | ZeroHedge
- A Lackluster Start to the Year | Financial Sense
The most relevant financial news and articles from the Internets
- THE SCARIEST JOBS CHART EVER | Business Insider
- The Hottest New Job Title In Silicon Valley: 'Spy' | Business Insider
- President Obama Lost A Hockey Bet To Canada's Prime Minister — Now He Owes Him Two Cases Of... | Business Insider
- ... | StreetInsider.com
- MIKE HUCKABEE: 'The Only Time Vladimir Putin Shivers Is When... | Business Insider
- Notable Mergers and Acquisitions of the Day 03/06... | StreetInsider.com
- Insane Photos Of The Marine Silent Drill Team Performing With Blue Angels Overhead... | Business Insider