For Jolting (or anyone else): trying to figure this out
Abercrombie (ANF) is up 10% today. Posted 22% jump in Nov sales. So why is ZUMZ zooming down when they posted about the same, plus they turned in great earnings and revenues? I'm sitting in my closet right now chewing one of my arms off.
Generally I would agree, would not be surprised to see 34 dollars by Christmas. That is why I advised someone to average down, if they can stomach the risk. This stock has an EXTREMELY high beta.
Having said that, I have never owned this stock, I have only shorted it, and played put options. The stock gets overhyped, as you stated, the wall Street ANALysts are all over it now. Ever wonder why they were not so enthusiastic when it was 24 bucks?
Most probable scenario is amateur "growth stock" investors will drive it to 34 or so, perhaps helped by some short covering, then it will be back to 27 or so by February. I will be looking at put options if it looks like it is playing out that way.
Look at the short as percentage of float for peers like anf and aro. And, look at percentage gain on a comparison chart for the past few years. Then let's discuss risk. Personally, I sold one third of my position a few days ago. Greed kept me from moving on.
The shorts will have to cover at some point. Any short experts out there?