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zumz - LULU minus the growth

05/07/2010 10:46 PM by Hesperian

I found this short idea on a Yahoo message board and it does seem like a decent short.

ZUMZ is an overvalued retailer who sells trendy niche clothing that revolve around the "X-Games" type of lifestyle. Meh.

Growth seems quite anemic for a valuation this lofty, and insiders have been selling. Scottrade points out that there has only been one insider purchase ever. Nothing about this company inspires confidence, and it has attracted a whopping 20% short interest.

Technically the company looks terrible.

I need to do more research but there is a good chance I'll be shorting this come Monday, possibly along with HGSI / LULU / AKS.

Rating:
5

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  • 05/08/2010 04:58 AM by Dave Pinsen

    Interesting. Looks like they report all the necessary fields. I'll get them added to the database so we can get a Z"-Score for it.

    Rating:
    0
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