i think you probably made a wise choice. longs here think, erroneously, that the recent increase in share price is the result of a short getting squeezed due to great earnings, but quite the opposite is true. earnings were at best lackluster - at best! the short here owns this stock and is clearly lightening up on its position after making a killing in this stock and that is putting it lightly. but what is next? i did not like the earnings report at all. yoy decline in ugg sales? uh, somebody please tell me when that has ever happened before? ugg sales usually increase like 20% yoy and have been doing so forever.
longs don't think that the short got squeezed, to the contrary as you stated the short is covering. so their recent quarter was lackluster, never thing in the past, look ahead.. look at the fundamentals of the company. No company can continue 20% increases yoy.. and every year, to expect that is not wise. Remember still profitable, still growing, still expanding, still buying back shares and yes .. giving VERY conservative guidance. They don't want to get burnt. Who would after they got burnt last year by not being able to deliver as expected?