Wednesday, March 30, 2011

Squeezing into True Religion Jeans

Today's listing boat concerns the ~22% short interest in TRGL.  Let's take a look at the chart (click to make larger):

According to FINVIZ, the short float in this stock is just north of 23%.  They have already reported earnings which were not the catalyst that the shorts were hoping for.  The company's financial profile looks terrific:  they have great earnings, cash flow and no debt.

Not sure what the bears are looking for, but they might be at a campfire expecting to roast marshmallows and might go home with with singed fur.  I took a long position earlier today anticipating a squeeze with an entry of $23.16.  Let's look at a 30 minute chart pulled today:

A breach of $23.40 may cause some bovine ursine! angst from being wrong-footed on this short trade.