Zumiez Zoooooooooms (ZUMZ) – High Short Interest Helps Fuel Rally

December 2, 2011
By

zumiez

 

 

 

 

 

 

  • Zumiez reported earnings yesterday which beat the first call consensus estimates of $0.45 vs. $0.42 expected
  • Gross margins were up and drove most of the earnings beat
  • Sales trends were also solid with Q3 same store sales of +6% and November same store sales of  +8.4%.
  • While ZUMZ results were solid, and ahead of expectations, a key factor in the surge is the high short interest.
  • Short interest as a % of the float is 25%, amounting to 14 days to cover.
  • The outsized tail risks to short positions are just as large as they are to long positions in this year’s manic markets.

Share Button

Tags: , , , , , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *

Search CJ’s

Friends of CJ’s

Since Sep 2011

Contact CJ’s

info@crackerjackinvesting.com