Kate Spade: Trees don’t grow to the sky

kate 20180818a

Kate Spade's (KATE) stock closed down hard after rising 10% this morning on a strong earnings report.  What changed in a few short hours? The press release revealed healthy 49% Y/Y sales growth and a 5 cent EPS when the market was expecting slower growth and only breakeven results.  But when Craig Leavitt (Co-Pres and COO) and Georg...

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A new day for short investors?

"Five Years of Futility Breaking for Bears as Shorts Drop" - Bloomberg.  The article describes a positive turn for short investing.  “You were seeing the winners win and the losers lose so we actually thought that this could be a really good year for shorting,” Mark Yusko, CEO of $4bn Morgan Creek Capital Management LLC...

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Stop using stops!

This topic draws passionate opinions from seasoned investors on both sides of the argument. We have encountered short investors who cut losses if a stock moves 8% against them and we have encountered investors who will add to losing short positions if they still believe in their original thesis. The question is whether or not to use mecha...

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It pays to follow the short sellers

It pays to follow what short sellers are doing.  Notwithstanding concerns about high short interest and short squeezes, backtesting has shown that stocks with the highest levels of short interest underperform the market - meaning the "shorts" produce results for their investors.  The shorts, as a group, are good analysts, bringing skept...

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