Shares of TZOO Getting Out of Whack Again
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Shares of Travelzoo Inc (Nasdaq: TZOO) are getting way out of whack to the upside again, driven in part by short covering. The stock is up another 12% today (Currently $67.10) after a bigger move yesterday.
There are rumors in the market that the company may settle with the SEC. As we pointed out yesterday, a settlement with the SEC at this point seems unreasonable (although not entirely unlikely) since the matter was disclosed less than a month ago.
Shorting TZOO at this point looks tricky but could be a worthy trade as fundamentally the company is laughable. Cleary the shorts have lost control of this one, but if the profit takers come out in force, which they might (Stock up 17 pts in 2 days), they can propel the stock lower.
There are rumors in the market that the company may settle with the SEC. As we pointed out yesterday, a settlement with the SEC at this point seems unreasonable (although not entirely unlikely) since the matter was disclosed less than a month ago.
Shorting TZOO at this point looks tricky but could be a worthy trade as fundamentally the company is laughable. Cleary the shorts have lost control of this one, but if the profit takers come out in force, which they might (Stock up 17 pts in 2 days), they can propel the stock lower.
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