Tuesday, June 26, 2012

Growth Stock Graveyard

In the past 6 months there have been more than a few former momentum darlings that have completely broken down.  For some value investor schadenfreude, below are the charts of TPX, NFLX, DECK and GMCR.  And for a blast from the past, two old favorites: CROX and KKD are also included.  It took about 1.5 years for CROX to bottom, while Krispy Kreme took about 2 years before it reached a near term bottom.  KKD went from 7x book value to 1.9.  CROX went from 13x book to 0.3x.  By comparison:

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