Epic Downfalls Of Shoe Companies

Last year I served as a volunteer in kids and preteen ministries at my church. Being completely fashion agnostic, I always paused to reflect whenever I saw some kid wearing some ludicrous piece of attire. I must be getting old because I openly wondered what passed for clothing these days. On top of that, I think I hated kids fashion even more, because the stuff was expensive, and you know that they're going to outgrow the clothes, or hate the fad in a very short time.

This leads me to two fads that I thought were absurd. Crocs and Heelys. Crocs are those ridiculous plastic shoes which claim to be the most comfortable shoes in the world, while Heelys are those shoes with a wheel on the bottom of them. What could possible go wrong with a wheel on the bottom of your shoe??

In either case, I tend to stay far away retail/clothing stocks because they're momentum stocks that have meteoric rises in stock prices, but also epic downfalls. May I present to you two stock charts:

Crocs (CROX)



Heelys (HLYS)


These stock charts tell me that the trend is dying off. I know Crocs has been having problems with other companies making cheap knockoffs, so it's hard for them to continue selling them at a premium price.

Anyone know if the trend is truly dead yet for these two shoe companies? Or are they staging a turn around? At the time of this post, CROX stock price is $4.44/share, while HLYS is $4.40/share. Any guesses who will win the race to $0.00/share?