Don’t get me wrong I would love to tell everyone that I knew today’s 3 plus percent drop was coming. But we would both know I was lying. The truth is that last night I didn’t have a strong feeling about what would happen when Crocs management started talking at 4:30 (Eastern). Not having a gut feeling makes me worry. I was fairly certain that Crocs was going to put up really big numbers (they did). My plan was to sell some when the shares spiked to $60. When the shares didn’t race to $60 before the start of the conference call I got spooked. The last thing I wanted was to see a chunk of my profits slip through my fingers. That has happened enough over the years that I could start a whole other blog just for those times. So I started to cash out. I sold 25% of my position early in after hours at $58.19, then left work. By the time I got home the price was in the $56s. With the price going the wrong way and $60 looking like a foolish daydream, I decided to sell another 25% at $56.58.
If I would have known that CROX would drop to $53.98 today I would have dumped it all last night. The good news is that the selling not only eliminated my margin loan but left me with some cash. (Average cost of shares was $47.15. Selling at $58.19 and $56.58 gave me a nice return. ) Not having a margin loan hanging around costing me money also gives me some options. The plan, right now, is to keep what shares I have for awhile. I still would like to see CROX at $70 plus. Without the margin loan I can afford to wait this one out, after all summer is right around the corner and that is when Crocs should haul in the money. I hope.
That’s it for today. Here’s to cashing profits when you can and to keeping an eye on your EveryDay Money.