... And we mean that literally ...
Zale has been been added to the SEC's list of stocks that can't be short-sold. Dow Jones explains ...
The rule, issued on Sept. 19 to help stabilize shares of banks, lenders and brokerages, now encompasses a range of other businesses with sometimes tenuous links to finance. For fiscal year 2008, the "All Other" part of Zale's business, which includes its insurance unit, accounted for less than 1% of its overall revenue.
Zale, which has had some “short” interest, is not the only odd name on the 1,000-company list – others include income tax preparer H and R Block, CVS drug stores as well as Ford and General Motors. However, its inclusion has raised eyebrows, with one commentator asking: “When did you last get financial advice from diamond seller Zale?”
In any case, while the short selling ban was just extended, it should expire in October.
UPDATE: Zale spokesperson David Sternblitz just told me: "Since we own three insurance companies, we qualify to be on the no-short selling list. So we decided to take advantage of it. It’s in the best of our shareholders to have reduced volatility."
