CROX Purchase Up Big in 24 Hours

Dear Diary,

Well, I was saying to myself the other day after buying Crocs, Inc. (CROX), "If this deal doesn't make me money, I should just throw in my stock market towel and go buy rent houses." I was pleasantly surprised the next afternoon to hear that the purchase at $9.96 went to $11.40.

Earnings are expected to be $1.70 to $1.80 per share this coming year, making the stock worth $17 per share on the lowest end and as reasonably as high as $36 per share on the top end.

Five deals like this a year, and you're rich.

Gene

Diversification

Dear Diary,

I just sold out of about 70% of my Harley Davidson (HOG) position at $38.57, due to a ratio of Total Assets to Shareholder Equity that presents more than $2 in TA for every $1 in SHE and a ratio of less than $2 in Current Assets to every $1 in Current Liabilities. I do continue to hold some HOG for a possible recovery. I did take about a $9 per share loss on those shares sold, but I see other opportunities for diversification in my old "Holy Grail" criteria that I developed 10 years ago.

I also removed Abercrombie & Fitch (ANF) from "My 20 Favorites" for having a Current Ratio problem (i.e. Current Assets to Current Liabilities).

I made a buy of Crocs, Inc. (CROX) at $9.96 per share with a p/e ratio of 5, plus a minimal brokerage fee.

I also bought Coach (COH) at $35.33 and Kinetic Concepts (KCI) at $38.31, plus a minimal brokerage fee.

Gene