PSUN, did investors jump to a conclusion? Tucker Anthony said today that the cancellation was due to illness.
Anaheim, California, May 26 (Bloomberg) -- Pacific Sunwear of California Inc.'s shares fell 27 percent amid investor concern about a possible decline in the retailer's May sales, an analyst said.
The company, which sells trendy clothing to teenagers, fell 5 11/16 to 15 9/16 in trading on the Nasdaq Stock Market. About 6.76 million shares were traded, almost seven times its three- month daily average. The stock has fallen about 51 percent so far this year.
Dennis Van Zelfden, an analyst at Robinson-Humphrey Co., said Pacific Sunwear, based in Anaheim, California, canceled a marketing trip, leading some investors to think that the cancellation could be linked to sales.
``Investors have jumped to a conclusion, that may or may not be accurate, that sales may be lower,'' Zelfden said. ``Any sign of deterioration, and investors will bolt.''
Officials at Pacific Sunwear weren't available for comment.
Zelfden, who has a ``buy'' rating on the stock, said he still expects the company's same-store sales to rise 4 percent for May, compared with 6 percent a year-earlier.
Pacific Sunwear is expected to report May same-store sales June 1. |
