Crox has been an interesting company to follow over the last year, and a good example of how I will go long and short the same company at different times based on the market price. Crox continues to demonstrate they are not a "one hit wonder", with new products selling strongly through the winter, but for a while the stock got ahead of itself.

I think the shares are worth $45. Therefore, at $70 per share in early Oct 2007, I thought the company was over-valued, so I shorted it. Less than a month later it was in the low $50's after their Q3 earnings release crushed the stock. I covered in the low $50's for a great short term gain. The stock then continued to crater. Momentum traders all abandoned ship, and the stock traded down to below $30, attracting value investors like me. With a P/E in the low teens, and growth still strong (especially internationally), the PEG has dropped well below 1.0.

Investing in "trendy" products is a bit riskier than I normally like, but this is a company that still has plenty of markets into which it can grow. Finally, try on a pair of Crox. They really are amazingly comfortable, and newer versions are not nearly as ugly as the original Crox. That being said, if it goes above $45 in the next year, I'll be selling my Crox stock and buying a couple new pairs of Crox for summer.