CROX and UA
As Nike looks out, some clothing companies are doing well in the US. I have been following UA and CROX for some time. Back in December, both were on my final list of companies to buy, but I couldn't pull the trigger because of valuation: I prefer to buy undervalued companies. Also, with CROX, I saw more trend and hype than a long distance runner.
CROX has surged 100% since December and UA has actually sagged a bit.
The key difference is the valuation: CROX now has a 22 P/E while UA is 55. Moreover, CROX is growing earnings 100%+ whereas UA is expected to hit 20% for the year.
My mistake on CROX was to rely too much on my perception that they were more sizzle than steak. That is, I believed that they were going to hit their numbers but I also believed that the trendy shoe would last 1 season. Instead, I was shown that they have more going for them. Nevertheless, I still believe that they don't have longevity. Fashion is fickle.