Buckle (BKE) Up, Santa!
by Houghton and Atkeson 12/24/08
Buckle (BKE) options have hit the screeen this morning with an apparent buyer of 1,000 BKE March 30 Calls (BKECF) for 90 cents, with the stock at $20.80.
The stock needs to move 50% for these calls to pay off -- one has to wonder if Santa is loading up on Buckle this holiday season? The activity is seven-times usual option volume.
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Based in Kearney, Nebraska, Buckle is a mall retailer specializing in teen apparel, footwear and accesories. Bucking the trends in the retail and the economic slump, Buckle's most recent quarter was quite impressive: same-store sales were up 19.1%.
The company pays a nearly 4% dividend (next payment is scheduled for Jan. 13, 2009). The short interest is 36% of float. The company has been buying back shares. The stock is trading at less than 10 times the January 2010 estimate of $2.23.
As teens tighten their 'Buckles', can a short squeeze take the stock to $30-plus?
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