Market Overview

G-III Post-Earnings Move Could Be Driven By Short Squeeze

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G-III Post-Earnings Move Could Be Driven By Short Squeeze

G-III Apparel Group, Ltd. (NASDAQ: GIII) shares were soaring higher by more than 8.4 percent on Friday on extremely heavy volume. After initially dipping as low as $24.42 following the open, the stock has surged as high at $29.63.

G-III manufactures a range of apparel products and owns popular brands such as Donna Karan, DKNY and Vilebrequin.

Q3 And Heavy Vol

The heavy volume is no surprise following the company’s Q3 earnings release on Thursday, but the stock's direction is.

G-III reported weaker-than-expected Q3 earnings and slashed its fiscal 2017 guidance.

According to shortsqueeze.com, G-III currently has an extremely high short percent of float at 14.0 percent.

The Next Big Short (Squeeze)?

Short squeezes and potential short squeezes have drawn a lot of attention in recent weeks following the incredible squeeze in shipping stock DryShips Inc. (NYSE: DRYS). The shocking squeeze sent shares of DryShips from below $4 to above $100 and then back below $7 within a matter of days.

Based on Friday’s trading action, G-III could be the next under-the-radar short-squeeze stock.

Many retail clothing and apparel stocks have struggled in 2016, including G-III, Ralph Lauren Corp (NYSE: RL) and VF Corp (NYSE: VFC). Short sellers have seized the opportunity to capitalize on the weakness in G-III stock, which is down 34.5 percent in 2016.

Stone Energy currently has 45.7 million total shares and nearly 5.8 million held short with 7.9 days to cover.

Image Credit: By SPERA.de Designerschuhe, Taschen und Accessoires from Deutschland [CC BY 2.0], via Wikimedia Commons

Posted-In: Apparel DKNY Donna Karan retailNews Short Sellers Movers Trading Ideas Best of Benzinga

 

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