Crocs, Inc. (NASDAQ: CROX): Just a quick update on the reaction to Thursday night’s news of raised guidance and a coming secondary offering. Friday’s reaction was a bearish engulfing candle, with CROX gapping up 8.7% at the open and then proceeding to decline by 14.4% to close at $24.18 on 2.6x average volume, as the market positions itself to relive the selling shareholders of their stock at the most advantageous price (to the market). As stated in Thursday’s posting…
…buying this secondary may prove profitable. Note: The exact wording of that sentence (and the one from Thursday): It does not say “buying on the announcement of the secondary” or “buying in advance of the secondary.” It says “buying the secondary,” which means buying from the underwriters, or if you can time it buying in the market the day before the secondary is completed. No guarantees, of course. Cheers!
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