Crocs... nice shoes... But 1.91 billion market cap?
These shoes are great and really comfortable, but at the end of the day is a stock price really worth $50? Sure they are experiencing great profits and high demand. Unfortunately, that is only temporary, as competitors rush to market. Walmart is even making a knock off version. By next quarter the market will be saturated and the thrill will be over. Besides this company can't sustain this type of revenue growth over the long term of 90% (from 04 to 05) Let's face it, this stock is like an 80's one hit wonder. A 36.1% short ratio? this stock is doomed to fail. If you made money going up, you should make money going down.
Recommendation: Short at $50, buy back at $20.
Recommendation: Short at $50, buy back at $20.