Sunday, March 11, 2007

CROX is trying to drown me

Since earnings just a few weeks ago CROX has been caught in an undertow that has dragged the stock down over 20%. I can remember selling shares above $58; it is becoming a fuzzy memory as more and more down days get strung together. The shares that I do have left are totally underwater. It is starting to feel like I have been so far underwater for so long with Crocs that I should be growing gills. My average purchase price is just a touch over $51. The tiniest slivers of a silver lining are that I still have faith in the company and the stock. So for now I will wait and see if there is a run going into next earnings. Don’t get me wrong if we see $58 again before earnings then I just might call it a day. If I don’t sell the rest then at least I will throw in a stop, like I should have done the first time around.

With the way the whole market has been acting the past few weeks we all might have to work a little harder this year to make the returns that some of us have become accustomed to. For the past 2 or 3 years, I think, the market has made it too easy to make oversized returns. I have scaled back my use of margin, trying to get the account in a little more conservative posture going forward, just in case.

In light of the market’s behavior the past few weeks have you changed anything in regards to your trading?

That’s it for today. Here’s to understanding the market may actually go down. And to keeping an eye on your EveryDay Money.

1 comment:

Lar said...

Are you still long on Crox? If so how much of your position did you keep? What happened to the stock?
(Besides the general doom and gloom in the markets,i.e., recession/depression,wallstreet banks bail out, etc.?)
Should I buy NOW? Or do you see it going lower still? I am generally BEARISH overall right now for the longterm (Stocks in general and the economy)