The last time a company with 20%+ short interest was able to pull off a special dividend greater than a $1 was ($Rkt) rocket mortgage in 2021 which resulted in a massive short squeeze.
So $GES CEO Carlos Alberini fuckin hates shorts almost as much as we do, and im going to outline what this absolute CHAD has planned for them.
His company Guess jeans literally smashes every ER by a country mile and hes tired of his stock being held down by these lazy greedy cocaine snorting short sellers.
Let me outline how this mega CEO is going to force the shorts to squeeze themselves by 4/16/2024
GUESS was established in 1981 by the Marciano brothers, who left the south of France in pursuit of the American dream. Inspired by a European influence, the Marcianos redefined denim.
There is currently 27m share float
27% of those shares are short : 7,596,908 shares
$1 billion dollar buyback program
NOW THE FUN PART
In their most recent investor meeting team $GES rolled up to the shorts door like the dancing pallbearers and introduced a $2.40/share SPECIAL DIVIDEND on top of annual dividend to be paid to anyone holding GES stock by 4/16/2024.
So.. what does this mean for shorts? We have arrived at the BD moment..
SHORTS HAVE TO PAY THE DIVIDEND
Shorts have to pay $2.40 for every share they are short on 4/16/2024
BUYBACK PROGRAM
What else was in that juicy investor conference? Wait for it…
$1 BILLION DOLLAR BUYBACK PROGRAM
See, GES makes so much fucking money they can afford not only a special dividend, but a $1B share buyback. Im telling you this man is going into the trenches and clearing the shorts out by his fucking self.
TLDR:
$GES is a boomer stock they thought was gonna go out of business when interest rates were raised and the opposite happened. GES has outperformed in earnings for the past year and is up 76% YTD. Shorts have to cover their ~7.6mm shares or they are forced to pay $2.40/share they are short on 4/16/2024.
Also, if you can’t do math. If u buy shares and hold thru 4/16.. it’s an instant 12% return via the special dividend at least.
Positions: 34c 4/19
