Party City has become a perfect example of going quietly into the night. Despite the immense amount of trouble the company is in, and their constant and predictable death spiral, the lack of volume goes to show that the market hasn't noticed Party City on death's doorstep.
- Helium supplies being limited means that medical tech companies receive first dibs, leaving retailers like Party City scrambling to find a way to stay afloat (pun intended).
- Financial stress from the retail apocalypse and having Amazon as a competitor left the company far too weak to incur a financial trip-up such as the helium shortage.
- Short interest of 39% made stock buyback attempts laughable and gave little leeway against the consistent downward spiral.
- Irregular price boosts leave short sellers with plenty of opportunity to swing trade, with just enough volume on the options chain to make a consistent profit.
- Long term bears will flourish on the upcoming earnings report in November, which will only further reiterate what the market has seemed to ignore among trade war fears and index volatility trades.
Current price? $5.00 a share. My personal price target? $2.00 by Halloween.
- Helium supplies being limited means that medical tech companies receive first dibs, leaving retailers like Party City scrambling to find a way to stay afloat (pun intended).
- Financial stress from the retail apocalypse and having Amazon as a competitor left the company far too weak to incur a financial trip-up such as the helium shortage.
- Short interest of 39% made stock buyback attempts laughable and gave little leeway against the consistent downward spiral.
- Irregular price boosts leave short sellers with plenty of opportunity to swing trade, with just enough volume on the options chain to make a consistent profit.
- Long term bears will flourish on the upcoming earnings report in November, which will only further reiterate what the market has seemed to ignore among trade war fears and index volatility trades.
Current price? $5.00 a share. My personal price target? $2.00 by Halloween.
Comment:
I was spot on. They brutally missed earnings and fell to just under $2.50 a share. Made a 170% return on the puts I was holding since I made this post.