Time To Take Another Look At Crocs, Inc – CROX

I was jumping through financial news yesterday and some interesting news on Crocs (CROX) had caught my eye.

Since reaching its peak of $75 in 2007 and living in the basement of $1 just a year later, quietly the footwear company has climbed its way back up to $7 over the last 6 months. Now I’m starting to consider whether it should still be in my dog house.

You’ll remember that what initially hurt this company was bad management, piling up in debt, and excessive inventory. Not to mention the fad that was the original Crocs sandel. There was just not much diversity.

2 years and a recession later, Crocs just may have gotten the rough times IT NEEDED to transform its business.

The most recent jump in its stock price came after its chief executive projected that the shoe maker will be profitable for 2010. He added consumer demand is at a higher level than the company expected and U.S. same-store sales are up, while its sell-throughs at wholesale are also improving in the U.S. and Asia.

Through this downturn the company worked to reduce inventory, manage costs, and aimed to clean up its balance sheet. Crocs is now debt free and has reduced its inventory by 60% as of third quater 09, while looking to expand their business in India and other Asian countries.

Overall, I am not necessarily ready to throw cash at this company but they are making moves. Fundamentally this company is on the right track; however, I’d like to see a little more than what some company exec has to say. Using technical analysis, I like this stock above $8. Short-term a buy with a stop below $7 and an initial price target of $8.