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Ahknaten -- Crocodile Weight Loss (CROX and NTRI)

Rating: 2.00 (1 votes)    Vote: Terrible (-3)Worse (-2)Bad (-1)So-so (0)Good (+1)Better (+2)Best (+3)
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Sorry that I constantly bash stocks, but I dislike CROX and NTRI. Sell.

Why must people always ask about momentum companies that have fallen like people figure skating uphill? (Thanks Blade) My valuation gives NTRI a target price of $12, and with the high short interest and high F-score, I'll avoid this one. Sell it. I'm not one to look at analyst reports as I try to come up with my own ideas, but I heard something that made me laugh and I think it's a good comment. In a Broadpoint Capital report they stated, "Having a Buy rating on this stock has been much like having a javelin through our head". I would certainly agree. Note to Broadpoint -- check out F-scores, you may have avoided it in the first place.

CROX has acted like a biotech company, instead of a footwear company. Be careful of 'fads', and be careful of 'fad' stocks that act like technology stocks. This was a momentum and story stock that folks piled up on. I remember hearing stock pitches when it was at $70. *sigh*. I'm glad I avoided that 'hype'. The insiders were selling it as it was heading higher. Oh dear analysts, don't you see such things? Why must you constantly play the hype and keep pitching such stocks? Now, CROX has enjoyed a much needed correction and I am happier. If you wanted a small 'bull' story for the stock, one could mention that the insiders haven't sold it lately. Lack of recent insider selling is a good thing, but I'm concerned with the short interest, previous insider selling, high price to cash flow, a very high F-score, high accruals and I get a target price of $24. I read on a blog about how one should buy this stock based on the chart. Oh please, if a stock falls, there is no guarantee that it will come back up. Avoid this one, pick up a copy of Backpacker magazine, read the reviews on hiking shoes and buy something else instead.

Oh man, if I could figure out how to include charts on the blog, I'd show a neat chart of CROX, with special thanks to Factset. Take a chart of CROX and line up the insider selling with it, it sure makes an interesting chart. The insiders were rather 'smart'.

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