Tuesday, February 13, 2007

Batman, Superman, & Crocs

Today was a busy day for Crocs watchers, at least on the reading front. For the classic tape watchers today may have ended as a “second guesser” type of day. The stock finished down 1.35% ($53.54) on above average volume.

A new Wall Street Journal article openly questions if Crocs can continue to expand at the current rate and if the stock can double again this year like it did last year. While the over all article didn’t slam Crocs it (for me) didn’t come across as hugely positive either. At any rate it didn’t have people rushing out buying the stock today.

On the bright side today brought us yet another licensing agreement. A deal announced with Warner Brothers will put the likes of Batman, Superman, and Wonder Woman on Crocs soon. Perhaps there has been so many licensing deal of late (NCAA, NHL, NFL, Nickelodeon) that the market no longer gets jazzed. (Looked that way today.)

Toward the end of the day a nice piece came out about the growth opportunities in Europe. It seems that Crocs is expanding nicely just across the pond. The Thomas Weisel firm sees the growth pattern in Europe mirroring that of the U.S. only running about 12-18 months behind as Crocs continues to ramp up their distribution channels. Their opinion is that Crocs may see 50% of revenues coming from international sales this year. (I would call that a good thing.)

Last but certainly not least Crocs picked February 20th as the official date to report numbers. They are scheduled to start at 4:30 Eastern. You can listen to the whole thing through a link on their web site (here).

Although it has hurt my eyes watching the stock fall the past few days I still think the company will have good things to say on the 20th. As the stock continues to have days where the chart is going almost straight up… or down it is not lost on me that Warner Brothers already has the Batman name on a rollercoaster along with a Superman coaster.

That’s it for today. Here’s to stocks that don't make us queasy and to keeping an eye on your EveryDay Money.

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