Crocs Fun Shopping

HSOG members, Lloyd and Kathy D, shopping at Crocs at Ala Moana Shopping Center.  What's in the green bag?  Kathy will be wearing her latest pair of comfortable, attractive Crocs shoes at the next HSOG meeting.  Yoda and Skywalker are still bullish long CROX. 

We met a nice woman from Australia that boasts owning 6 pairs of Crocs shoes, but Lloyd beat her with his 19 pairs.

Final Report

Final Report from Skywalker:
As of 12/9/2011, CROX closed @ 16.03 and we own 600 shares (bought @ 25)
CROX value is $9618 and cash in this account is $2424 =
Balance in the account of $12,042
Profit $2,042 is a profit of 20.4% since January 2011.
Our plan is to continue holding the shares of this fundamentally strong company with good potential for growth.
Technically, the long-term charts show the price to have hit support around this area with forecast to rise above its 52-week high of 32.47.

Message From YODA: 

It has been disappointing not to see CROX stock recover from slightly missing their guidance in the 3^rd quarter of 2011. It would appear that almost any company (and investor) would be ecstatic seeing increasing sales and profit of 28%. Perhaps many investors and analysts are still of the opinion Crocs is still a one style clog that is a fad slowly disappearing.  Actually, I don't feel Crocs is even a shoe company…….but rather a “comfort company” providing the ultimate foot massage while strolling along the streets or standing.   

 

Crocs have a strong global play, with an excellent balance sheet, no debt and an experience management team executing aggressively to a guidance of 30 – 31% growth. In 2011 sales will be close to a billion $’s and EPS of approximately $1.25.

 

Yoda….the “Croxaholic”

Position Update

On Nov 1 we sold 6 contracts Nov 20 calls @ .40.
Nov 8, CROX @ 17.40, filled my exit order Buy to Close @ .05 cents
(Think or Swim does not charge commission to close for .05 cents or less.)
This closes my covered call position with profit of .35 x 6 contracts = $210.
Our cash balance is now $2424 and we still own 600 shares of CROX
bought @ 25.   On the next rally, we will look to sell calls again to generate
additional income. 

Sold November Covered Calls

On Nov 1, CROX @ 18.22
Sold 6 contracts Nov 20 calls @ .40 = collect $240 credit
CROX has been weak and I do not think it will rise above 20 by
expiration on Nov 19.  If it stays below 20, I keep the $240. 
If it rises above 20, I will adjust the position by rolling to higher strike price
for December calls. 
If the price falls further, it might hit my exit order I placed an order to buy to close at .05 cents GTC (good till canceled) because if CROX price falls further,
this will close me out of the trade with .35 cents profit x 6 = $210.  

CROX update

We were assigned 600 shares of CROX at the price of 25 = $15,000. 
We keep the $540 credit from selling the 6 contracts Oct 25 put @ .90 and our cash balance is $2214.
We own 600 shares of CROX, which closed today @ 17.01 = $10,206, suffering loss of $4794.
Our account total today is $12,420, up $2420, which is +24% since Jan 1, 2011. 
Earnings announcement is on Oct 27, Wednesday, after market close. 
We might purchase more shares and/or sell covered calls on our 600 shares. 

CROX down 36% in after hours trading

Crocs, Inc.

(NasdaqGS: CROX )

After Hours: 17.11 -9.53 (-35.77%) 6:09PM EDT

Crocs, Inc. Revises Third Quarter 2011 Revenue and Earnings Guidance
Crocs, Inc. (CROX) today revised its revenue and earnings guidance for the third quarter ended September 30, 2011.
For the third quarter of 2011, the Company now expects revenue to be in the range of $273.0 to $275.0 million, an increase of approximately 27% over the $215.6 million of revenue reported in the third quarter last year. This compares to the Company’s previous guidance for third quarter 2011 revenue of $280.0 million. For the third quarter 2011, the Company now expects diluted earnings per share to be between $0.31 and $0.33 compared to its previous guidance of diluted earnings per share of $0.40.


CROX

Earnings Whisper ®:	N/A
Consensus Estimate:	$0.40
Surprise Expectation 1:
Release Date: [confirmed]	10/27/2011
After Close

From Yoda: 
I must say I'm surprised with Crocs 3rd quarter earnings and sales coming in at over 25% most probably, that the sell off is so great. It certainly has not dampen my enthusiasm. ...... plan to purchase more on the 27th depending on investors reaction.

From Skywalker:

Will monitor the price and adjust the naked puts position this week before expiration Friday. 
On Sept 27, sold 6 contracts CROX Oct 25 put @ .90 for credit $540

Sold October Naked Puts

On 9/27/11, CROX was @ 27.55 and I sold 6 naked puts.
Oct 25put @ .90 x 6 to collect total of $540 credit. 
If CROX price drops below 25 on Oct 21, I want to buy 600 shares of CROX
at the price of 25 will cost $15,000 and I would keep the $540 premium collected.
If CROX price stays above 25 on Oct 21, I will keep the $540 premium collected and
watch for a retracement down good entry to purchase shares.