Put Crocs (CROX) On The Block
Crocs (CROX) Crocs may actually be moving into the stage where its price and market cap are so low that it could become a takeover target. After announcing awful quarterly numbers and a weak forecast, shares in the company have…
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Crocs (CROX) Crocs may actually be moving into the stage where its price and market cap are so low that it could become a takeover target. After announcing awful quarterly numbers and a weak forecast, shares in the company have fallen to $4.38 down from their 52-week high of $75.21.
Crocs said it expects its second quarter 2008 revenue to be in the approximate range of $218 million to $223 million and expects diluted earnings per share in the range of $0.03 to $0.07.
The company did say its international business continues to do very well. As extraordinary as it may seem, Crocs market cap is not only $366 million. The company has no long-term debt.
The Crocs line of products would not be a bad match with the Nike (NKE) casual shoe lines. Adidas has some products in the same category. If Crocs is going to get back to $10.00, it may have to be through an acquisition.
Management does not own a great deal of Crocs. Are investors tired enough to take a huge haircut? Investors who got in at $20? That’s the question.
Douglas A. McIntyre
Contact [email protected] for any questions or corrections.
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
