bear_mkt's  Instablog

Send Message
I'm an individual investor and trader. I'm currently retired. My professional work experience has been in commercial real estate, working for a major supermarket company and for an urban development corporation. Bear_Mkt is my pseudonym -- bear seems to be my usual investing view. Don't take... More
My blog:
Dollar Crisis
  • PacSun - tactical surfer - short squeeze? 0 comments
    Dec 7, 2011 7:05 PM | about stocks: PSUN, TLB

    PacSun has lost market share as fickle teen tastes have moved away from the California surfer look. Their old management team frittered away a good franchise and a large cash horde.

    The new management team has upgraded its fashion look, but the turnaround has been slow and PSUN missed revenues last quarter.

    It was widely expected that PacSun would be on the ropes this quarter. The NY Post business section just pronounced it all but dead. Its biggest outside shareholder stopped accumulationg shares. The bears ramped up their short positions and looked to be prepared to push it under with a wave of selling upon todays earnings release. 

    Looks like PSUN is doing some tactical surfing around the rocks. In addition to better than expected results, it announced a multi-pronged recovery plan, including exiting unprofitable stores through deals with landlords, additional financing with a bank and PE group, and a shareholder rights program. Convertible prefered has been issued to the PE group.

    The Street identified PSUN as a short squeeze candidate on positive earnings. The news is beyond earnings. With a large amount of shares owned by an overseas investment group, PSUN's float is less than its outstanding shares.

    PSUN has been trading up after hours. After todays posditive news on Talbot's, another distressed retailer, tomorrow should prove interesting for PSUN.

    Just my opinion.

    Stocks: PSUN, TLB
Back To bear_mkt's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.