The teenage retailer is set to report earnings on April 5 at 8:30 am EST. There is little guidance as to whether the news will be positive or negative, but it doesn't seem to matter to DLIA investors. The stock has moved approximately 16% in the last 4 trading sessions, while volume has gone from a paltry 90K shares on March 30 to 577K on April 4; keeping in mind that average volume is just 245K.
But we've seen this before. An interesting comparison can be made with the 4 trading sessions prior to their earnings announcement in December 2006. During the period between 12/1/06 and 12/6/06, DLIA shares moved approximately 13%, with volume climbing from 284K to 892K.
Prior to March 30, the stock had returned approximately -16% from 12/7/06 to 3/29/07.
So what can be expected tomorrow? During the trading session following the announcement in December, volume shot up more than 150% from the prior session and the stock traded at its all time high of US$12...enough to keep me hoping for a repeat.
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