“When sentiment turns negative the market yields bargains, and one such deal is footwear-maker Crocs (CROX:Nasdaq – commentary – research – Cramer’s Take), Jim Cramer said Wednesday on CNBC’s “Mad Money” show.
“Sometimes the market just gives you a great deal. You gotta take it,” Cramer said. Crocs, a maker of light-weight, odor-resistant shoes, came public last week at $15 and traded to $30 on its first day. Since then, the stock has been caught in the market’s downdraft; it closed Wednesday at $28.
“There was no way Crocs was gonna catch fire when the market was getting beat up,” Cramer said. If not for the general malaise, “Crocs would be trading at $35, and that’s where I think it’s going to go.” Cramer highlighted the shoe-maker’s 57% gross margins, solid unit growth, and profitability.
“They have a stylish product that’s in demand and doesn’t have a lot of competition.” Cramer said, adding that he sees “seven points of upside and maybe just a couple of downside.”"
Read the entire article, Cramer’s ‘Mad Money’ Recap: Beat a Path to Crocs, written by thestreet.com staff for thestreet.com at (http://www.thestreet.com/_googlen/funds/madmoneywrap/10268690.html?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA)
“Crocs Inc. (CROX: chart) priced 9.9 million shares at $21 per share on Thursday. The price came above the expected range of $19 – $20. On Monday the company increased the number of shares from the original filing of 9 million and its price forecast from an earlier range of $13 – $15 per share. The offering was worth $207.9 million.
Crocs offered 4.95 million shares of common stock and selling stockholders sold the remaining 4.95 million shares.
In addition, the selling stockholders have granted the underwriters a 30-day option to purchase up to 1.5 million additional shares to cover over-allotments.
Piper Jaffray and Thomas Weisel were the lead managers with SG Cowen, BB&T Capital Markets, D.A. Davidson and Wedbush Morgan Securities serving as co-managers for the offering.
The Niwot, Colorado-based company started selling its resin shoes in 2002, and rapidly became a cult hit in its home state.
Crocs reported net income attributable to common shareholders of $12.6 million on $75 million in sales for the nine months ended Sept. 30, compared with a net loss of $627,000 on sales of $8.1 million a year ago.
Crocs debut is the second strong performance on the U.S. IPO market this year for a Colorado-based company. Last month, shares of Denver-based Chipotle Mexican Grill (CMG: chart) gained 100% in their first day on the New York Stock Exchange.
The stock closed the first day at $28.55, and ended the week at $26.55, up 26.4% from the offering price.”
Read the entire article, Another Active Week for IPOs, written by Yordanka Bahchevanska for 123jump.com Financial Markets at (http://www.123jump.com/market-update/Another-Active-Week-for-IPOs/16664/)