Li Lu started a small position in CROX

u/itchypig · Reddit — r/ValueInvesting · February 17, 2026 at 21:58 · ⬆ 11 pts · 💬 24 comments  | View on Reddit ↗
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Original Reddit post

Author notes Li Lu's Himalaya Capital opened a small CROX position and Norbert Lou remains long, framing CROX as a cheap turnaround play he plans to hold.

CROX — LONG The author plans to hold Crocs as a turnaround play, citing Li Lu's new small position and Norbert Lou's continued ~17% Punch Card Management holding as validating signals. He argues international growth for the memorable shoes offers upside for a stock priced like a dying company at roughly 8x P/E, while management may be fixing the poor HeyDude acquisition by cleaning up inventory and backlog. The catalyst is deleveraging plus buybacks (about 10% of shares acquired in 2025). Main stated risk is the weak HeyDude acquisition and the fact the funds do not publicly share their reasoning.

Personally I plan to hold on to this one as a turnaround play while the company deleverages and buys back their shares (they acquired about 10% of their outstanding shares in 2025).

Score 11
Comments 24
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Ideas
u/itchypig Reddit r/ValueInvesting
Hold CROX as cheap turnaround with buybacks
The author plans to hold Crocs as a turnaround play, citing Li Lu's new small position and Norbert Lou's continued ~17% Punch Card Management holding as validating signals. He argues international growth for the memorable shoes offers upside for a stock priced like a dying company at roughly 8x P/E, while management may be fixing the poor HeyDude acquisition by cleaning up inventory and backlog. The catalyst is deleveraging plus buybacks (about 10% of shares acquired in 2025). Main stated risk is the weak HeyDude acquisition and the fact the funds do not publicly share their reasoning.
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This Reddit post, published February 17, 2026, features u/itchypig discussing CROX. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/itchypig  · Tickers: CROX