Filed under: Management, Insiders, Newspapers, Coach Inc (COH), Crocs Inc (CROX)

Back in June, the Disciplined Investor was poking fun at the prodigious rate at which Crocs (NASADQ: CROX) insiders were dumping stock as the media hyped the company’s prospects. In a satirical letter to the company’s shareholders on behalf of the CEO, Andrew Horowitz wrote:

As for me, I still support the stock. I see no reason why it cannot double from here. I am feeling generous and want to give back to those who have helped me….With all of the supporters and bulls looking for shares to go to $150, I want to make sure there are plenty of shares available for those who have not yet been able to capitalize. So selling a large portion of my shares is merely an altruistic move to allow these that do not have shares the ability to now have access at these inflated prices. Why should I be so greedy? Since I have sold about 600,000 shares and now have a smaller position (234,243 shares held directly) I fell much better that I have allowed others to enter the “Crox Club”. Now there are 600,000 more shares available for others to buy. I really feel good about this.

Now we’re in November. Shares of Crocs have taken a hit, losing nearly half their value since the beginning of the month. And predatory securities lawyers have rushed to the scene, filing class-action lawsuits against the company, filled with vague allegations of securities fraud. Given that nearly every company that has the nerve to report a bad quarter gets sued these days, I’m not inclined to read much into the lawsuits.

Continue reading Did insider selling predict trouble at Crocs?

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This entry was posted on Monday, November 12th, 2007 at 5:24 am and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.