Mexx

Was Peter Lynch Wrong? Crocs and Other Trendy Companies

I see CROX nose dive more of a correction exacerbated by an economic downturn, and a couple of management misteps (yes, call it a perfect storm) than a trendy stock gone out of style. The stock run up had more to do with media hype and hedgies bidding up the stock, at some point they realized it got way ahead of itself and the shorts came in. As someone else said, the international growth CROX is having cannot be ignored. Everyone in Israel, Spain and every other beach town around the globe wears these things. Been to a hospital lately? An for those of you that say this is a single product company, you might want to visit CROCS.com

I have never owned the stock, but I think it is too early to write off this company. At this price level, it may be time to be greedy, take a long position and be a little patient. This storm too shall pass.