MONT, Bank of American downgraded AMES just now. Technical analysis will continue to show overbought since June shorts went up about 600,000 share. July shorts by the nature of the downgrade will show increases. In a few days Nasdaq will report the shorts, created from the pull back on a popular stock.
In reconstruction of trading data and insider transactions, one can be certain that AMES continuously stayed popular. In May, MONT traded 8.1 million shares. Tucker Antony traded 3+ million shares. By coincidence, FMR Corp reported 10% ownership. And two of the Johnson family of the Fidelity Funds' fame each reported 10% ownership of AMES. Total trading data showed 27+ million shares changed hands. Ettore did not report any sale of his holdings yet.
Clearly, many institutions sold out and Johnsons bought and FMR bought. But the stocks are in much stronger hands, now. The lower price resulted in the latest pull back to buy back 2.4 miillion shares, may not have been covered yet. So, the volatility in AMES stock performance will continue to be excessive, but moving up as the retail industry is watched carefully. Overall, the retail is weak in apparels, July and August will be interesting to participate with the promotion goings on. Many consumers will have pent up desire to buy some good values. Back to school sale currently in progress is about a month too early.
I think small investors should hold and consider some addition when AMES pull back again. July shorts data should be analysed before any action taken, though. |
