One of the strangest corporate events / squeezes I’ve ever seen is happening over at Children’s Place (PLCE). I’m just a curious onlooker with no dog in this race (well, not quite true: I did think about buying some on the initial dip earlier this week and have a literal rounding error position, but largely passed because retail messes have a way of snowballing quickly, so I do have a “shucks, I missed it” dog in this race), but it’s such a strange and interesting story I figured I’d do a quick piece on it (particularly in case it turn into Gamestop 2.0!).
Seems like a pretty clear short (or was at $38.) If their business is a disaster, this buying doesn't fix it. No way i'd be long and I'd probably look for an entry to bet on its decline.
Got long first thing this morning and traded it on the squeeze. I would be very careful playing it on either side. Nice note Andrew
Who is Mithaq? And please tell me it’s pronounced mythic.
I was wondering the same.
“a Saudi family investment firm with ties to the world's biggest Islamic bank”
https://news.bloomberglaw.com/bankruptcy-law/childrens-place-soars-after-mithaq-capital-builds-54-stake
How was this accomplished without filing for Hart Scott before buying >50% control?
Maybe I missed it, but don’t see mention of Mithaq filing for pre-approval.
Great article
Seems like a pretty clear short (or was at $38.) If their business is a disaster, this buying doesn't fix it. No way i'd be long and I'd probably look for an entry to bet on its decline.