Hard to believe but there's actually something uglier than Crocs' shoes -- the performance of its stock. This one-time fave of momentum traders has seen its share price plunge by 86% over the last six months alone. The most recent bloodbath came earlier this week when the company guided sales and earnings estimates sharply lower.
For investors the question is simple -- were Crocs merely a fad, or is the company and the brand merely experiencing some very nasty growing pains? How you answer that question will determine if you think the freefall represents an interesting long-term growth opportunity, or if there's simply more room to short the stock on its way to fad junk heap along with Snapple, Krispy Kreme and Zubaz (no they aren't making a comeback!!).
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