The 1 Big Problem With Crocs

Despite being a Crocs bull, Austin still has some problems with the company as an investment. For example, Crocs has done a tremendous job of growing its product in international markets, but will all that growth abroad, it's also parked a huge amount of cash outside our borders. That means that if the company wants to bring that money home, it's going to be hit with a hefty repatriation tax. While this isn't a problem in the short run as Crocs builds out its presence in other markets, such as Europe and China, at some point if it wants to bring this money back, it's likely to come with a big discount.

Don't let that discourage you from investing in stocks with an eye to international growth. In fact, some of the absolute best opportunities out there today are strong U.S. companies that have ventured overseas for big growth. You can read about some of the best in our premium research report: "3 American Companies Set to Dominate the World." Click here to get your free copy before it’s gone.

Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Crocs. Motley Fool newsletter services recommend Nike. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2001041, ~/Articles/ArticleHandler.aspx, 10/24/2014 9:31:49 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement