My experience is when everyone thinks the same thing is going to happen it never does - time will tell if that happens in this case. In this case, I could see how all shorts expect this to go down to $1.50 or less again, but I suspect this company will be mentioned a lot by the Jenners going forward, when it wasn't mentioned by them last year when the price fell. Further, at the lows around December, I'd wager tax-loss selling influenced the price.
New K&K summer collection comes out Friday. If the Jenners do what they did last time, they'll be working the national talk show circuit promoting it, and by virtue of that mentioning PacSun in the media and to their millions of Twitter followers. Then into the summer, they have an opportunity to further promote the brand once Keeping Up With The Kardashians' new season begins. Almost half the original spring collection is sold-out online, and the brand has only existed for about seven weeks. Hopefully the company invested in a larger inventory this time around with more items.
With a market cap of only 137 mil and next quarter sales comps expected to be flat, there isn't much downside left. I would be much more worried holding ZUMZ with a 700 market cap with negative same store comps. If anything I would be willing to add here when others are selling. They exceeded estimated last quarter. The cooler than normal weather is the only thing keeping next quarter estimates conservative.