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How smart of an investment would it be to purchase stock in Crocs?


their stock has BOOMED over the past year and doesn't look to be stopping. the only bad part is that now the stock is over $80 per share.

i wonder if it will split soon.
also, if you bought into it at the $80 dollar mark, how many shares would it take to be worth it to make a profit if it keeps going up or splits.

I think you are pretty late to the party. The stock has already blasted quite a bit, and I don't see those ugly shoes being in vogue past this summer. Also, stock splits are completely irrelevant.

I'd say you missed the boat already on that stock. Crocs are not likely to get any hotter, and soon the trend will cool. I believe that most money to be made on that stock already happened.

Crocs are just another fad....like all the other things that come and go.....if you did not get in in the beginning of that move (April 23, 2007, price $53.75), there is no point in getting in now.

CROX reported 2006 earnings of $1.61, beating the consensus estimate of the 6 analysts covering the company by 5.23%.

For 2007, analysts estimate CROX will earn $3.00 per share, a 86.34% increase over 2006 results.

CROX is doing a good job in comparison to it's peers with a Return on Assets, Return on Equity, and Revenues Per Employee of 32.74%, 43.93%, and $200,838.20 respectively. Although the company is among the worst at managing their resources, they are among the best at managing their owner's equity and at generating revenues from employees compared to other companies in the Footwear industry.

However, the stock is still WAY overpriced. It's P/E ratio is 42.41, with the idustry average of 21.36. This is almost double the average.

The long term chart is showing a huge bull move from the 50s into the 80s. With the price being only 5.21% lower then its 52 week high of $89.45, I do no think it is worth taking a position now.

RSI is over 70, confirming that the stock is extremely overbought. I would wait for a pullback to the 50s level and then make my decision.

However, this stock still could be day traded because of its heavy volume and volatility.

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