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Friday, August 04, 2006

What a Crock!

Crocs (CROX) shares had been up all after halting yesterday and up all through the pre-market session. The company beat earnings handily and then raised guidance for the next quarter. But this morning the pending shares that had been filed in May are looking as though they will now be sold in the next two weeks. We are still trying to get more data on this with the details. Shares were up at $30.75 for the highs, but are now around the $27.50 mark. This is the type of thing that companies need to announce simultaneously with their news if they don't want to kill new buyers in the stock. CROX had traded up over the $30 mark in May, so now we have what may be a ceiling on the shares if you believe we are in what may a secular longer-term range. If this offering does come about, none of the proceeds will go to the company, as this is existing holders and insiders cashing in some chips. CROX only sold 9.9 million shares at their IPO in February of this year. This may draw some fire today as the news comes out.

Jon C. Ogg
August 4, 2006
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