If We Have Momentum then Buy Crocs Inc. (CROX)

Crocs Inc. (NASDAQ:CROX) is a momentum stock, its been called a 'fad', labeled a 'growth stock' in 2008 that bit back, but at a time when the market is firing on all cylinders and you can't stop it you have to revisit ol' Croxie.  If you believe the Bull Rally will keep running, buy the ultimate swing stock -- CROX.

If you can't beat em, join em, Crocs Inc. (CROX) shares moved up 6.3% and hit a new 52-week high of $7.87 before ending the day at $7.85 a share. 

In the last 12 months, Crocs shares have gone from 79 Cents to its $7 and change.  CROX has made a comeback, in 2009 shares are up an outstanding 533%.  Whether you hate Crocs shoes or not, I'll bet your kids wear them and if Bundy had to sell them today, I'm sure he'd be loving it.  But forget Crocs for a second, Al Bundy fans, Ed O'Neill is back on a money new sitcom called "Modern Family" Wednesday's on ABC (believe me, its worth watching).

Crocs will never be the $68 stock it was back in 2007, can you believe it split 2:1 that year? 

However on bullish days when the market is jumping for joy, Crocs shares always managed to at least double in volume and gain a few percentage points.  Play the swings with this stock, that is all we are implying.

Back in August, Crocs said it expects Q3 2009 revenue of between $150 million to $160 million, with an adjusted loss per share ranging between 6 cents to 14 cents.

Keep in mind that Crocs posted its FOURTH CONSECUTIVE LOSS this summer, the net loss in Croc's second quarter came to $30.3 million or 36 cents per share, compared with a year-ago net profit of $2.1 million or 3 cents per share.

During Q2 2009 revenue fell 19 percent in the Americas, the largest region that includes the United States, and dropped 42 percent in Europe where sales were hurt by knock-offs. But they rose 30.5 percent in Asia, the company said.

Good for them, nurses, soccer mom's and children all across America keep buying the shoes, but it will never take them back to $68 a share.  However, on days where the Dow jumps 100+ points, you can count on CROX moving up at least 5%.

Disclaimer: No positions in CROX.