I’ve been seeing a lot of headlines recently about investor interest in the shares of Crocs Inc (CROX). They’re the company that makes those colorful clogs all the kids are wearing (well, all the kids except mine!).
Apparently, options interest has been very high lately as the shares have mounted a comeback.
But you can count me one of the naysayers on this one. Reason: It reminds me of every other stupid trend-driven retail stock I’ve ever seen.
The way I see it, these companies are the dirty underbelly of Peter Lynch’s “buy what you know” philosophy. They suck in people who don’t really follow the markets or care about the sustainability of the underlying business. They rise like mad for a while. And then — when kids start wearing leather mocassins – the whole kit and kaboodle comes crashing back down.
Now, I’m not saying that you can’t make a ton of money in the process. I’m just saying that I prefer to avoid stocks like Crocs entirely, especially when the name is appearing in the headlines a lot.
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{ 7 comments… read them below or add one }
Crocs are about the stupidest trend I’ve ever seen. I’d steer clear too.
DO AWAY WITH THE FED — 6 YEAR OR LESS TERM LIMITS — NO LOBBY CONTRIBUTIONS — CUT GOV’T TO 1/3 OF PRESENT — PROSECUTE CONGRESSMAN ETC. — REINSTATE A REAL LEGAL SYSTEM — CLEAN OUT LAW SCHOOLS AND JUDICIARY
Hi Nilus,
I enjoyed reading your column today 6/16/2009. Isn’t it amazing that you have so little left from a $75,000.00 income. We live in California where the sales tax is 9.5% and there is income tax at 12%. Thanks for the reality check. Your column is always right on. Sincerely, Candi
Hi Nilus,
Your article today 6/16/2009 was very thought provoking and I think provided good reference points for figuring out one’s financial situation. I was considering buying a house by the end of the year to get the $8,000 tax credit, but even if I find a real bargain, I wonder if I should wait.
Trish
Sorry but your blog is complete nonesense.
If it had any truth in it then I like millions of others on Social Security would be dead.
My gross income is $13,000 a year. nothing else. No fault of my own. Wife got cancer and we lost everything. There is a lady 25 yards from me existing on $600 a month. She is not the only one. We still have to pay rent. utilities, local taxes, run a vehicle, insurance. and even with a H.M.O our medical expences can bust us. I have had to cut my food bill down to $50 a month. Yet not entitled to food stamps. Heavens, I have tried.
Please work your figures for me to live and then dare to blog it on here.
Please remember. We live in California. Gas is now $3.
Thanks. L.B.
Dear Nilus
I have been following you on the Money and market matters for almost a year and read all your advise. I work in a warehouse where it seems like its a dead end job. But in order to fully take advantage of the company and the 401k plan of course you have to at least be working there for 5 yrs or more. My question regards to the spending and saving your income which you mention with Mr and Mrs median. Since i just started with this company i putted away 6% of my pay for a 401k i was wondering is it a wise investment or how much should i put in? considering at the end of the year i only get back 5% of what was earned. I mean i barley survive from paycheck to pay and luck fully i have no debt that i owe. Thats all that i was wondering about hope to hear back with your advise
regards,
chris
Hi, Chris. Not sure I understand all the details of your company’s retirement plan, but in all cases, the money you contribute to the plan is always yours to keep no matter how long you stay. That assumes you’re eligible to participate, of course.
Companies do have different “vesting” schedules for when THEIR matches become yours. It sounds like your company’s plan takes five years before that money is fully vested.
Only you know your personal situation, and I would certainly recommend building a little emergency fund outside the 401(k), but I do think that your contributions to a 401(k) make sense even if you ultimately leave and don’t get the entire company match. That’s because the 401(k) contributions are helping you save for retirement and avoid taxation now, too.