A Play In Deckers Before Earnings
- Posted by Frank Zorrilla
- on July 20th, 2011
Deckers ($DECK) reports on 7/27/2011 after the close, like Apple ($AAPL), $LULU, $NFLX, $GMCR, Deckers is one of those companies with a great product that people can’t get enough of. I’m not recommending holding Deckers through earnings, but the stock is technically set up and a move through 95.40 might lead to some short covering, anticipatory-they might beat again buying. According to Finviz there is only 37.39 million shares in the float, and with the stock less than 2 points off the 52 week high, 10% of the float is still short with a short interest ratio of about 3.5 days.
Technically, in the last 9 days the stock has traded roughly between 91 and 95.30, a breakout could take the stock to 100. If we take the trade, we will be out before earnings and probably stop ourselves out at the low of the day if and when it breaks out.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker. More »
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