I sold my position today as I was fortunate enough to secure a very healthy return from my entry-point in the high teens. I had predicted that ZUMZ would go to $30 before the end of December and I still stand by that, but I decided to lock in my gains and exit, rather than stick around for the remaining 5% or so. I think that ZUMZ still has upside potential. I'd say it has the potential to trade in the $30-35 range over the next three months if the overall market keeps going strong, but may trade in the $25-$30 range otherwise. My only concern is that continuing appreciation will require that ZUMZ maintains its current revenue growth trajectory, and that will get harder and harder over time. If they can pull it off, this stock can reach as high as $40 in 2012. If the growth slows, I think it could come back to the $20-25 range in mid 2012. However, I certainly wouldn't be shorting this stock right now.
Anyway, I'm going to seek out other undervalued stocks. I tend to seek out significant undervaluation rather than ride the bandwagon on growth stories, so I'm out for now. Good luck to all of you.
doesn't growth inherently slow? their EPS grew only 13% YoY. store openings versus the base 8%-10%. I don't see the momentum in the model any longer, would be a seller. I am short up here, looking for easy $3+ move to the downside.