Lets not forget that Pier 1 beat quarterly earnings and got a 200 million dollar loan for share buyback and dividends. Now when most companies beat earnings the CEO's will capitalize on it to raise the share price. However, for Pier 1 there was only one article on the fact that they beat earnings. Also their was only one article on the fact that they they have been given 200 million for share buy back and dividends. The CEO is sneaky because he is currently trying to keep the price low while the company buys shares back. This can easily seen on the 3 month chart. In the past month the volume has been about 50% higher than average. As the price dips down more shares are being back. A shareholder no doubt finds this drop in price annoying, but in the long run this will pay off. If less shares are public than the amount they put into a dividend will be higher per share. Not to mention that a higher price comes with higher dividend. Unfortunately, In next few months the share price may not get back to 18. But, in the next 6 months I see this company hitting 20 again and maybe even exceeding 25. With that said buy around 17.50 and if your currently invested in this company just hold, there's no point in selling at a loss. Hope I gave everyone an idea of whats going on with Pier 1 right now.
I'm not sure the higher trading volume indicates clearly that the company is buying back shares aggressively. Could also be mutual and hedge funds. Either way it's refreshing to see us over $18 this morning. Probably the pending home sale data having an effect.