SlipStream

True Religion Short Squeeze

I hear you on the short squeeze - and sure you mention the company's guidance but let's look around lately and we have seen a rash of companies reduce their outlook for the year. To base your argument on "what they said" ....well let's just say let's try some analysis. Case in point, the EPS growth expectations by the Street is 61% in the September quarter over the June quarter - very aggressive given the current environment. I say that having visited a number of True Religion places - their own stores as well as where others have sell the products(s). The overwhelming feedback was - "its been dead." And I get the point that the product is well liked but with people cutting back vacations as gas prices climb, grocery companies indicating that people are trading down, you have to think its possible that while people may want True Religion jeans (or some other fab fav kind) that they may settle at least in the near term for something else. And that does not even get into the notion that this is a "dresses" year for women - not an expert there but I have been told by more than a few women that this is the case.