NEW YORK Take a good earnings outlook, an upcoming 2-for-1 stocksplit and some cynical investors, and what do you get?
If you're Snapple Corp., you get a rallying stock price.
Shares in the New York-based seller of bottled iced tea climbed$3, or 5.8 percent, to $54.75 Monday on the NASDAQ market.
Analysts, who asked not to be identified, blamed investorscalled short-sellers, who have bet the stock will collapse. Theyhave sold borrowed shares in hopes of buying them back at a lowerprice later on, when they need to repay their loans.
Unfortunately for them, when the market turns against them andrises, the short-sellers scramble to buy shares to limit their lossesand cover their obligations.
And that helps to force the share price up quickly.
"It could be shorts, but this thing's trading in its own world,"said one trader.
Analysts say Snapple stock also is running higher inanticipation of a Sept. 3 date for the company's latest 2-for-1 stocksplit.
A third factor is the company's earnings picture, whichcontinues to look good.
"There is no other external event that we are aware of thatwould make the price move like this," a spokesman said, when askedabout short covering.
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