But when it comes to Crocs products, I've been a loose cannon. Well, at least by my standards. With my trusty sage green Caymans getting nearly 24/7 use for the past two months, I am a completely satisfied customer. The proof is in the pudding. It's not the first minute, hour or even week of wearing that won me over. It was time spent in those Caymans, and my feet are gloriously content, much like hippos in a pool of mud.
There are still a plethora of haters when it comes to both Crocs products and Crocs' stock. Tom Barlow kids that a certain Crocs-killer would be a sudden popularity with the products by third-rate politicians and celebs. Maybe he's on to something, but I surmise that it's too late. George Bush has already been seen wearing black Caymans. Food Network guru Mario Batali has his own line of Caymans. Not exactly sexy stuff on an Apple Inc. kind of ubercool level.
I don't care what they wear. I just know what my feet like. If I can't find a pair of cooler-looking Crocs in local stores, I can just order them online. That's the beauty of today's world, which gives Crocs an edge. It's something Nike didn't have at its disposal 20 years ago.
As for the stock, I did not expect any kind of upward trend by CROX until Monday, July 23. That would be more than a week before earnings. Instead, CROX made a run to $49 last week before settling at $47. I'm expecting volatility and sideways action, but any kind of positive news would prove my prognostication wrong. Earnings? There's no indication that the early summer season will disappoint. In fact, it's normally Crocs' biggest season.
That would be perfectly fine by me. This is still an A- stock pick for me because of the numbers. The growth rates. The margins. Whether the heavy load of insider sales during the quarter prove to be a tell, we won't know for sure just yet.
If my feet are right, though, CROX longs will be feeling just as comfy now as they will after Aug. 2.
Disclaimer: Pupule Paul is long CROX.
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