The Local newsletter is your free, daily guide to life in Colorado. For locals, by locals. Sign up today!
The rest of the market is down this morning, but Crocs–the Niwot-based maker of the funky clog-like shoes–is trading up so far in already heavy volume.
If you remember back to midweek, the shoe company (NASDAQ:CROX) announced that third-quarter demand had massively slipped and that fourth-quarter projections needed to be lowered, sending shares plunging in after-hours trading.
So why is Crocs up today? Two possible reasons exist. Perhaps investors think it’s irrational that a stock that traded at $75.21 in October 2007 is now trading near $1. Or maybe some hopeful investors think Crocs could be snapped up (pun intended) in a takeover.
According to this story, the author thinks Crocs’ proprietary Croslite material would be attractive to Nike or to Under Armor. But don’t think that the spongy, stain-resistant Croslite is only for shoes. Crocs already has a line of clothing in which the material is woven into the fabric, giving shirts a stretchy characteristic. That, too, could be appealing to an athletic-apparel company.
I wrote about Crocs’ mounting troubles in our June issue.