A Quick Note on CROX

Earnings Tomorrow After the Bell

By Bryan Bottarelli
Wednesday, July 25, 2007 3:12 PM EDT
Wed, 25 Jul 2007 19:12:00 GMT

Dear Bottarelli Research Member,

The major market averages have been all over the map today — making wild intra-day swings without any semblance of order or direction. As a result, I’d like to maintain our current positions, all of which are now showing profits. But while we have a moment here, I’d like to quickly address the situation we have with Crocs (CROX – NASDAQ).

CROX

Tomorrow at 4:30 p.m. Eastern Time, the rapidly growing footwear retailer will conduct a conference call to review their Q2 financial results, and this will most likely have a big impact on their share price. With CROX now selling their proprietary closed-cell resin and odor-resistant footwear in over 80 countries, the versatile shoemaker looks ready to report impressive results that could blast the shares to a new 52-week high. But at the same time, there is also the looming threat that CROX could trade lower on the news. In my view, this is one of those situations where we should employ the “no guts, no glory” attitude and hold our CROX August 50 Calls (CQJ HJ) into this announcement. But if that’s too risky for you, then you can exit this trade today (and possibly even tomorrow) for the exact levels you entered. Heck, with the stock now up over $1.00, you might even be able to make a profit off the play by the close of today’s action.

Now don’t get me wrong. If CROX is rallying hard in advance of tomorrow’s announcement, I’d be inclined to sell the position for a profit. But this alert is simply an early reminder for you to consider your risk vs. reward level and carry forward with the CROX position in the most suitable way for you.

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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