in the short term...they gotta plan and will squeeze you contrary to logic to force mass covering. TRUE within a year this one will be in 5 - 12 range...but will your broker force you to cover before hand??
It is obvious that this stock is wayyyyy over priced. But with only $3million shares float and insider lock-up expiration far away, it is really hard to say how much more this stock can run up. Imagine someone with a lot of money can squeeze the shorts for a long time. To buy 3million shares at $60 would only cost 180mil which is nothing to all institutional investors. I will bet that they own the shares at a ridiculously low price to begin with. I won't short until this stock show a sign of weakness. Don't buy this stock either, you know the price will drop before year end.
I made a half hearted effort to short this in 40s and Fidelity (thankfully) for once was not able to get me the shares. Although nothing should be surprising after seeing the insane investing over yhe past 1 1/2 year, the willingness of investors to pay these prices for a donut chain with mediocre results does surprise me. If you are long congratulations, but I would put in a stop loss on this stock as reality always sets in (eventually). If you are short, hang in there if you can. This stock will lose momentum and interest and then take a big fall. I know I will be waiting for that day. I have nothing against the company, but there is no way this company's fundamentals support this price. As a lot of people have found out (or will soon find out), fundamentals do matter.
Growth in the equity markets has been strong for the last ten years (Dow up 300% and Nas up 820%). Many investors out there have never experienced the impact of a bear market, and consequently fears are low, and in many cases non-existent. It's been easy money for many people and the risk taking has reached rediculous levels. Researching fundamentals is no longer considered necessary with the current "who could lose in this market?" attitude. Gut feelings, uninformed assumptions, and emotions are now driving the markets. And if it's an IPO, look out, people can't get enough. After all IPO's are a sure thing, right?
KREM is a stellar example of this. People continue to buy driving its P/E through the roof. Then, justify the pathetic margins by making comments stating that earnings no longer matter with the so-called new economy stocks. Wow! Let the sucker rally continue...unbelievable!
Hotdiggities disclaimer: Growth figures are approximations just to make a point, and should not be used as consideration for future investment decisions.