MIK - Why Michaels Companies' Stock Rose 10% Today
On the heels of an earnings-based plunge of 15.6% on Thursday, shares of arts-and-crafts retailer Michaels Companies (NASDAQ: MIK) sprang back to life with a strong bounce on Friday, rising 9.9% as of 1:50 p.m., EST.
There was no obvious trigger for Michaels' sudden jump just before 11 a.m. EST. A number of mostly negative analyst reports were posted overnight, and the company released a full 10-Q filing for the third quarter -- an hour and a half after the jump. The surge wasn't accompanied by a sudden spike in trading volumes, which could have been a sign of bulk buying action from a large trading house. Even the social media networks were fairly quiet, and I saw no signs of Michaels being discussed in a positive light on cable news networks.
The stock market doesn't always make perfect sense. In this case, it looks like yesterday's selling was a bit too harsh, and today's buyers are snapping up Michaels shares at a rock-bottom price.