Party City Holdco Inc (NYSE:PRTY) is surging and here are few reasons
1. The shares are oversold after a bad earnings call in early November. Shares were pushed down further due to a lockup period which was expiring. That seller is done and the pressure is over.
2. The “January Effect” is due for this play. All the tax loss players are out, creating a lack of selling pressure.
3. The short interest (people betting against the stock) is high. That causes and outsized move to the upside when it gets going.
I think a break over $2.50 and we likely get a move up to $2.70+, maybe more if we happen to hit any good news.
