CROX: There are many problems here

SOMEHOW, Crox has managed to sell these odd shoes. There clearly is a market for them. The fact that they have not be able to churn a profit concerns me big time. The margin on these shoes is enormous. Here are my concerns: 1. Management - John Duerden has been known to drive companies to the ground, along with the Ex-Circuit City board. Most of management has sold off their holdings, just before the large decline. 2. Demand - I see demand falling in the US, and the trend will most likely follow in Europe. Asia demand has picked up which is good, but if they fail to grow in Asia, there is little room for growth elsewhere. It looks OK for now, but look at the next concern. 3. Counterfeits - Counterfeits will become an increasing problem and the litigation for this is expensive. CROX will not be able to keep up with their IP enforcement at a reasonable price. Once counterfeits flood the Asia market, I think we will see a decline in demand in this market. Their cash position and balance sheet looks decent. I still believe they are selling ugly shoes, and the majority of the CROX surge has ended. I hate to label it a "fad" because they are still producing a respectable revenue, but I'm not very impressed with their diversified lineup. All of their shoes appear ugly, and I think it will only be a matter of time before people choose alternative shoes.