I love their product, but I wouldn't buy their stock.

Posted on by The INO.com Team
I love their shoes, but I wouldn’t buy their stock.

I own 11 pairs of these very comfortable shoes and wouldn’t think of buying their stock even with today's sharp drop.

We have been negative on Crocs (CROX) since November 2, 2007 when our "Trade Triangle" technology signaled a change in trend at 44.10. The downward trend for this stock in the past six months has been relentless.
Never thought I would be modeling my latest size 11 crocs on this blog

This from AP - April 15, 2008:

NEW YORK (AP) -- Shares of shoe makers sank Tuesday, after Crocs Inc. announced guidance cuts that one analyst termed "stunning," amid lower-than-expected demand.

Crocs reduced its first-quarter outlook far below analyst expectations late Monday, citing weak sales and costs related to closing a Canadian manufacturing plant.
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It looks like there's going to be continued erosion in this market. So how did we do trading Crocs? Well, we have basically had two major signals in this stock.
The first signal was way back in ’06 when a major "Trade Triangle" signaled for a positive trend for Crocs starting at 16.25 on 5/31/06. From that point on, this stock moved steadily higher and reached a high of $75.21 on 10/31/07. Since that time this market has been in a melting ice cube mode as it steadily melted down even though everybody seems to be wearing their shoes.

One of the great things about MarketClub’s "Trade Triangle" technology is how it keeps you out of stocks when the market is headed south. Most investors tend to trade from the long side of the market, so their greatest risk and their Achilles heel has got to be when a stock they're holding turns down. Normally when this happens the fundamentals still look very strong. However, when you use our "Trade Triangle" technology you don’t have to guess at the trend anymore. You are going to see on your computer screen MarketClub’s "Trade Triangles" dynamically signal when you should exit from a market that has decisively turned south.

Take a few minutes and watch our new video on Crocs (CROX) and see exactly how you would have fared using MarketClub’s "Trade Triangle" technology.


Adam Hewison
Co-founder of MarketClub

3 thoughts on “I love their product, but I wouldn't buy their stock.”

  2. I agree with this gentleman,s approach to using Market Club to weed out the best of the best in my subscription. I have been able to consistently beat the market with minimum risk and maximum reward since subscribing to Market Club. I would not drop my subscription-as it provides the research I am not willing or competent to do. To-gether I have a winning combo Thanks again

    Terry,

    We love hearing success stories. Thanks for sharing yours.

    Adam

  3. Adam,

    I pay $995 a year for a monthly investment newsletter for the past 2 1/2 years. They guy who publishes the newsletter is a "stockpicker" and is well known. He's got a great documented record for the last 20 years, but I can attest his porfolio really stinks when you look at it in the most recent 2 or 3 year window.

    CROX was one of his darling stocks and he correctly identified it as a buy a while ago. At one point we saw 200% gains in the stock, but he did not advise us to sell it. One of his reasons was for keeping it was "low P/E, and superior fundamentals" and also he doesn't want us to have to take short-term capital gains tax. We are now in a 60% loss. I joined marketclub and now use both the news letter and marketclub's tradetriangles to filter my trades. I wish I had been a MarketClub subscriber back in November so I could have sold this pig CROX. I'd much rather pay 35% short-term capital gains tax on a 200% or even a 100% gain than take a loss!!

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