True Religion is in a very interesting position. I invested in this stock in late 2005 to early 2006 based on solid fundamentals and heavy buying volume. I got out in 2006 before I went abroad for a year but have always kept an eye on this stock. What is so interesting is that this stock was last seen with a short interest of 60-70% of its total float. What I don’t understand is this company has raised guidance again and again. They did it once in May, and now again. Even after raising guidance they posted earnings of 39 cents, beating street estimates of 32 cents and beating revenue estimates by 14 million. The company has year over year earnings increase of 86% and a projected 5 year growth rate of 20%. TRLG also opened up its NYC store in union square and will have 5 new stores by the end of this year. Ratio wise, ROE and Profit margin are ridiculously good. So why is everyone short on this stock? Previous articles have mentioned how this stock is in perfect position for a short squeeze. They were right. The stock has jumped to 28 from 23 when the articles were written. I don’t have direct numbers on how many people got squeezed out but according to shortsqueeze.com there are still 10,505,300 shares short, 66% of the float. What the hell do you guys all know that I don’t? The PE ratio of 23.40 is also lower than most high-end retailers who aren’t posting solid numbers. I think this will be squeezed some more but TRLG just got downgraded for hell knows why and is down 5% afterhours. Buying opp?

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