This post was just published on ZYX Short Change Alert.
ZAGG is an example of how it pays to slowly and cautiously build short positions in popular stocks with poor fundamentals. ZAGG was the darling of the stock market when we started shorting it.
The present ZAGG position is short from $13.85. Profits have previously been taken as low as $6.70. Over a long period of time, significant profits have been booked by trading this position. 50% of the full core position size is being held.
Our long-standing target zone has been $3 to $5. Today in the after hours the stock traded as low as $4.73 and now has moved up to $5.10.
The company reported Q1 revenues of $51.5 million vs. consensus of $66.57 million; EPS came at $0.11 vs. $0.21 consensus.
For FY13, ZAGG projects revenues of $274 to $280 million compared to consensus of $316 million.
What To Do Now?
Those holding the stock may continue to hold.
Those not in the stock may wait for a signal in the Real Time Feed.
