Ugly Shoes

I admit it I was seduced by the story (it is a great build your own company, create your own destiny type of story) and the sales growth is something just shy of straight up. Plus I see tons of them on people’s feet.

Crocs (CROX) has had stellar growth since coming public this year. I stayed out even as the stock doubled. When it hit $50 a share I was thinking Holy Cow!! The pull back to the $45’s, I thought, offered a good entry point.
Bought some at $45.50 (11-20-06) I know, the day before insider lockup expired. Not one of my greater decisions. The next day it started dropping and when it hit $42.95 I doubled my position on margin this time no less. I thought of all those on the message boards screaming about one trick ponies, fads, and catching falling knives. Well I was a little gun shy so I sold some covered calls on half of my position (Dec 45’s @ $1.60) Still think that was a good idea.

Yesterday I watched as the market sold off and my SNDK took a real big hit and my ugly shoes drifted lower. Today CROX comes back a little and SNDK drops more. Now the head games start. How far do I let either one of them go? Buy back the options and sell the stock? Admit a mistake? Hang on write some covered calls in Dec. that way I at least have some money coming in? The mind does crazy things when you’re bleeding money. I’ll let you know.

That’s it for today keep your eye on your EveryDay Money