Posts Tagged ‘ days to cover ’

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

December 2, 2011








  • 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.

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