Ticker Shock: Three Reasons Crocs Could Bite Back
Friday's top stories and stocks with potential to move.
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.
1. 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.
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.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter