No ANF, More CROX

Dear Diary,

After a week of studying Abercrombie & Fitch (ANF), I decided to pass on a purchase this morning at $70 per share, or about 11.5 times expected earnings per share over the next 12 months ($6.05). I don't like the 1.76 Current Ratio.

In a recession, great stocks can sell at 6 to 10 times earnings, so I've been more conservative than buying at Relative Value to the 30 Year Treasury Bond recently. Plus, I want to get back into making the money from the Holy Grail criteria that I've already discussed. All I see in the ballpark right now is American Eagle Outfitters (AEO) and Croc's Inc. (CROX), so I bought CROX this morning to catch that position up with AEO.

I will say that I was in Wal-Mart yesterday and saw some "clogs" for sale that look a good deal like Crocs, without the little jewelery, so I don't know if CROX has a vast future before it, but I do see a recovery from its current 6 times expected earnings per share.

My CPA and I are working up the paperwork on an endowment to fund projects dear to my heart. I really have no great need for personal wealth, but I do feel we need a vehicle to do our fellow man a good turn. It makes us work harder. It will fund medication for leper cures, cancer treatment, purchasing slaves their freedom in Africa, etc.

Gene

More CROX

Dear Diary,

I've been buying up more CROX, as the price stays below 6 times expected earning per share for 2008.

I also have a book on order to study arbitrage.

Gene