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.
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