We have previously taken profits on ZAGG (ZAGG) but are still holding a small position. We are adding a 15% tranche right here at $11.33.
ZAGG is experiencing a massive short squeeze today. The short squeeze is triggered by an excellent presentation ZAGG made at a conference yesterday. ZAGG has now become highly promotional to investors. Typically companies become highly promotional when the managements feel that fundamentals alone are insufficient to hold up the stock price.
Caution: those who can not handle a short squeeze should not enter this position. There are no guarantees the short squeeze is about to end.
Despite ZAGG’s promotional efforts, nothing has changed in our short thesis. The introduction of Smart Cover for Apple iPad is a game changer and over a long period of time will stunt ZAGG’s growth.
