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Crocs (CROX) & Heelys (HLYS) Followup at Trader’s Narrative

Crocs (CROX) & Heelys (HLYS) Followup

At the end of June I wrote about Crocs (CROX) and Heelys (HLYS), two faddish shoe companies that I didn’t think had any longevity.

Back then Crocs’ shares were in the low $40’s and Heelys were in the mid $20’s (red arrows below). Heelys’ chart looked much worse as it was in a clear downtrend and had just fallen through intermediate support. Not surprisingly it fared worst among the two. Today it closed at $6.19 a share.

heelys hlys chart followup.png

Crocs fared better as it rose to a high of $75 but since then it has fallen to the high $30’s. The damage is in the broken uptrend:

crox crocs followup

Even Maddox got in on the action and landed a few punches. As you’d expect, insiders have been selling like crazy. The insider selling wasn’t a tipoff since anytime you have a huge runup, insiders can’t resist taking free money. The actual tipoff was that the product is a fad and offers no real benefits which competitors can not emulate at a much cheaper price.

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One Response to “Crocs (CROX) & Heelys (HLYS) Followup”  

  1. 1 Lessons From The Crocs (CROX) Implosion

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