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China Stocks

CROX not so fantastic quarter

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Crocs (Nasdaq:CROX) reported a solid quarter yesterday. It also raised its own year 2007 guidance, but the number is not enough to exceed the street’s “sky high” expectation. The stock already got crushed in the after hour and pre-market trading. It’s likely it will suffer for a while. But I think the fundamental of the business is intact. From my observation in China, this thing just got started…let’s see what Olympics can do for this next year.

Another interesting story about Crocs. When I told my wife that I will have big “paper loss” on CROX stock today, she said why didn’t I sell it yesterday. Yeah, I agree I was a bit too optimistic about the stock. She also said the Crocs should sell few shoes as the weather becomes colder. Very much true. I think that’s one reason the company guided conservatively for the Q4 (and 2007 full year) results.

Seasonality is more an issue for international growth because Europe and Japan, the main growth area currently, is usually colder than US in winter. Unfortunately Australia and Brazil can not make up that…

Mindray (NYSE:MR) is going to report its Q3 today. While I don’t bet on quarters these days, I hope it will be good, so that I could get back some of the losses from CROX 🙂

On the other side of the pacific, Chinese market is recovering from the recent drop. I’m glad to see Vanke (000002.SZ) traded above 40 Yuan at one time today. It closed at 39.50 Yuan. From my 2 China trips this year it appears to me Chinese, young or old, wanted to own their own homes so badly. And I believe Vanke, the No. 1 home builder, will benifit greatly from this trend.

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