Monday, March 14, 2022

♟ Buy This Stock for $12 Less Than the Insiders Paid

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"With shares now trading around $70, you can own Crocs at a $12-$14 discount relative to what insiders paid."

Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance

Bryan Bottarelli

You may consider them hideously ugly...

Or you may consider them practical, convenient and surprisingly stylish...

But whatever your opinion, plastic shoemaker Crocs (Nasdaq: CROX) has been one of the most impressive turnaround stories in recent years.

As you read this, Crocs are being sold in 85 countries throughout the world - including in 193 outlet stores, 107 retail stores, 373 company-operated stores and 73 kiosks/stores-within-stores.

Back in February, Crocs reported strong fourth quarter earnings, but a weak outlook spooked investors, which triggered a sell-off.

Year to date, Crocs shares are down 50%, far outpacing the 10% decline of the S&P 500.

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However, it's worth noting that two Crocs insiders recently stepped up and bought millions of dollars' worth of shares.

  • First, Director Doug Treff bought $1.5 million worth of shares for around $84.13 per share.
  • Then, Chairman Thomas Smach bought $986,000 of shares for around $82.88 per share.

Before these purchases, neither insider had bought Crocs stock on the open market for years.

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YOUR ACTION PLAN

With shares now trading around $70, you can own Crocs at a $12-$14 discount relative to what the insiders paid - which could be the deal of a lifetime. Research firm Baird has an "Outperform" rating on the stock and a $200 price target. Even if shares recover to only half of that, buying today for $70 could represent a timely entry.

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MONDAY MARKET MINUTE

  • With stagflation a major fear, the Global X Lithium & Battery Tech ETF (NYSE: LIT) is a great proxy for electric vehicle plays and high oil prices. It holds names such as Tesla (Nasdaq: TSLA) and Albemarle Corporation (NYSE: ALB). It also tends to benefit when inflation expectations are heating up and growth expectations are cooling - both of which are occurring right now. Tracking.
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