Furniture Brands International's stock price jumps 16%
September 12, 2012-- Furniture Today,
ST. LOUIS — Furniture Brands International's stock price was up about 16% on the New York Stock Exchange Wednesday afternoon - a day after a bullish column about the stock was published on a popular website for investors.
By early afternoon, the stock price had risen 16% to $1.16 per share. Earlier in the week, the price fell below $1 for the first time since the depths of the recession in 2008 and 2009.
A column published Tuesday on the Seeking Alpha website said Furniture Brands' stock might be poised for an increase because short-sellers - investors betting on a price decline - may have overreacted. If this happens, short-sellers are often forced to cover their positions by buying the stock, which causes the price to rise.
But the column also said the company may be in a position to benefit as the housing market recovers, and suggested that its brands could be worth more than the current market capitalization.
A spokesman for Furniture Brands International did not immediately respond to a request for comment.
Manufacturer and importer FBI is the parent company of brands including Broyhill, Lane, Thomasville, Drexel Heritage, Henredon and Maitland-Smith.
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