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Ticker Shock: Three Reasons Crocs Could Bite Back


Friday's top stories and stocks with potential to move.

This is an open letter to construction workers worldwide -- or at least the ones I pass on my way home everyday: If possible, please stop doing work on bridges, tunnels, and roads into major bridges and tunnels during rush hour. It took me a sickening 2 and a half hours to get home yesterday. The bonus was sitting next to a guy who looked like he'd run a gallon short when painting his pants onto his legs. Serenity now!

Asian stocks were a bit of a mixed bag. The Hang Seng actually closed down 2.51%, but the Nikkei ended up 0.23%. Meanwhile, European stocks were in negative territory earlier this morning. And here in the US, we're currently trading higher.

Here's what I'm focused on this fine Friday morning:

Excluding items, the shoe company lost $0.06 a share in its second quarter. That was way better than the $0.21 loss the Street was looking for. Meanwhile -- and I can't believe I'm saying this -- it managed to beat on the top line, too.

My thoughts:

It was definitely a better-than-expected quarter and I believe (congrats, longs) the stock will get a nice goose early on in the session. We may even start to see estimates perk up in the next few days.

2. But I don't necessarily believe it's poised to revisit its heyday in the very near future. I suspect it will be a while before we see any real meaningful and consistent bottom-line numbers in the black.

3. If it can manage to close and hold at better than $5, that would be a good thing. But I doubt institutions are going to be clamoring for the stock after this result.. It will likely take a few more quarters of solid performance to really raise interest levels all around.

For my last take on Crocs, click here.

Netflix (NFLX):
The news that its board approved a $300 million buyback made my ears perk up.

I've been thinking the shares are a little on the pricey side, as I pointed out in an article late last month. But maybe I'm the dummy here: Approving a big buyback with the stock up near its 52-week is a pretty good sign.
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No positions in stocks mentioned.

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