Posted
Oct 12 2007, 08:31 AM
by
Robert Walberg
They're ugly, made from plastic, get caught in escalators and are littered with holes, yet somehow Crocs have become a retailing phenomenon.
Everyone from little kids to grandparents now walks around in these clunky, brightly colored eyesores, and the madness isn't contained to the U.S. Management recently announced that it expects international sales to top domestic sales in the recently completed third quarter. Amazing.
Equally amazing is the growth in the stock. Shares are up 256% over the past 52 weeks alone. That's better than the returns of Apple (+128%) and Google (+46%) combined. So is it time to sell before the fad fades?
If you take your cue from insiders then maybe the answer is yes. Over the past few weeks, insiders have unloaded just over 179,000 shares at an average price of $67 per share. However, it's important to remember that insiders still own about 11% of the stock and that there are numerous reasons why insiders will occasionally sell their stock. The recent selling doesn't look to be unusually heavy so I wouldn't let this info sway my decision
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