Forget what you think about Crocs Inc, listen to the Analysts

Every blogger, journalist, and CNBC commentator has an opinion about Crocs Inc. (NASDAQ:CROX) right now and all of them are convinced they are right.  I don't care what's going on with the Short Interest or if the stock has fallen off the map (because it has), for bargain shoppers, this is our moment.  Forget what you think you know about CROX shares, let's listen to the Analysts who get paid by corporate America for their thoughts.

Since last week CROX shares have dropped 26% and the analysts covering the stock have issued the following, all lowering their Target Prices (TP):

Every one of them maintained their Rating (click to read their comments), but all of them reduced their share price, but the average of all three -- $50.

These guys believe that in the next 52 weeks, Crocs Inc. shares on average should hit at least $50.  So today the stock is trading under $25, it doesn't take a Math major to figure out that a year from now these analysts believe CROX shares will increase 100%.

So are they right?  Will the Short Interest traders pull the stock down further?  Is Crocs Inventory going to bleed into their growth?  Is it just a Fad? Does that Shark-Ad thing make you want to buy their shoes?

Truth be told, CROX sells for only nine times analysts' 2008 earnings estimate of around $2.70 a share.

Forget checking the Yahoo Message board every 2 seconds to see if you can find out something worthwhile to help you justify buying/holding/shorting the stock.  It's not going to work, neither is refreshing the CROX ticker to see how is the volume playing out and is the stock moving.

Relax.

Don't believe in the stock or company, then don't buy it.

But to be on the short side of this stock right now is more risky than picking up a few shares at under $25.  Any analyst or day trader will tell you that, and as soon as they've played this one out, they'll buy.  They always do.

We are all sick of hearing about this stock, but that's when it makes the most sense to buy.  The Masters have posted a ton of articles about CROX this past week, it was too fun not to poke fun at them or talk up the headlines.

But now, it's time to do a reality check, and the reality is, the Street obeys the almighty analysts.  It's just the way the system works.  Apparently Barron's is now saying CROX is 'fairly valued' and 'to cover your shorts in the stock'.  Every investor is puzzled as to why Crocs hasn't issued a press release saying their stock is worth holding onto and other warm fuzzies. 

Corporations don't issue warm fuzzies, they make money or they lose money.  Crocs Inc, is making money and at $25 a share, I couldn't resist picking up a few shares.  Let everyone have an opinion or some brilliant angle on CROX, because in the end, it doesn't matter.  The analysts get the final word and if you try and beat them, you will lose every time.

They may be the ugliest shoe on the planet, but Wall Street still thinks their pretty enough at a price target of $50.

Frank Lara Jr. -- theStockMasters.com & WallNewsletters.com Co-Founder 

Disclaimer: The Author has a long position in CROX.