First of all, I wanted to address a few comments that were posted on the yahoo finance message board.
One person compared Crocs to Nike in that they have room to expand into all areas. My response to this is very simple. Nike started off as an athletic shoe company. It became sucessfull because of its marketing, specifically endorsement deals with high profile athletes. Can anyone tell me that they see Crocs sucessfully branching out into other types of footwear? It is much easier for an athletic shoe manufacturer to make flip flops or sandals and be sucessful than it is for a sandal company to branch out into athletic shoes. Once again I invite any examples to the contrary.
Another comparison was made to Starbux (SBUX). This one is much further off than the Nike comparison. Starbux has a steller 10+ year track record. And the demand for coffee is not going anywhere. The demand for colored shoes with holes in them on the other hand...
My final point to adress is the sale of 100,000 shares of stock by a Crocs director (link here).The proceeds from this sale are over $7 million. Don't get me wrong, no one can blame him for making some money after the phenomenal run up in price. However, one must wonder if he is cashing out at the top? Only time will tell...
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment