Most of you have probably noticed the massive advertsing blitz JOSB is currently conducting on CNBC. You also know that the purpose of airing endless (and very annoying, in this case) ads on CNBC is all about selling JOSB stock- not selling clothing.
The natural question therefore, is: Why are they devoting so much money to pumping their own stock?
Two possible answers: They are about to announce a secondry offering. Or- They want to merge/buy out a competitor (like CBK, MW, KCP, PERY, etc.) using JOSB stock as currency.
Either way, that makes JOSB a pretty good short candidate.
Ideally, combined with buying a sector ETF/mutual fund, to complete a pair trade. Shorting Avaya back when they endlessly pumped their own stock in CNBC commercials would have worked out incredibly well. Can anyone think of other, similar examples?
Thoughts?
The natural question therefore, is: Why are they devoting so much money to pumping their own stock?
Two possible answers: They are about to announce a secondry offering. Or- They want to merge/buy out a competitor (like CBK, MW, KCP, PERY, etc.) using JOSB stock as currency.
Either way, that makes JOSB a pretty good short candidate.
Ideally, combined with buying a sector ETF/mutual fund, to complete a pair trade. Shorting Avaya back when they endlessly pumped their own stock in CNBC commercials would have worked out incredibly well. Can anyone think of other, similar examples?
Thoughts?

