Jim Cramer on Kohl’s: “Not a Safe Short”

Kohl’s Corporation (NYSE:KSS) is one of the stocks that Jim Cramer weighed in on. Cramer discussed the short positions against the stock. He remarked:

“I’m talking about stocks like Kohl’s, okay? 50% short interest that at one point doubled because of social media instigation, just to bash the hapless shorts who are truly pressing their bets here. Even with Kohl’s, there’s some merit. Kohl’s used to trade in the 50s three years ago, and it received three takeover bids right in that level. The short busting started, it was at 10 bucks, having traded as low as six bucks. That’s too cheap.

Downright embarrassing to know that so many hedge funds have been caught with their pants down again in a situation where there’s too much short interest and not enough stock floating around to cover if something good happens, and something good could happen. Kohl’s has no debt maturities for four years of any size, and has new leadership. It has a fabulous deal with Sephora. What happens if one of those acquirers comes back? Not a safe short.”

Photo by Adam Nowakowski on Unsplash

Kohl’s (NYSE:KSS) is an omnichannel retailer that provides apparel, footwear, home goods, and beauty products through both physical stores and its online platform.

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Disclosure: None. This article is originally published at Insider Monkey.