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Mossimo Stock Has Unexplained Surge

September 30, 1998|Leslie Earnest

Mossimo Inc., whose shares have been hammered all year, saw its stock surge 58%, making the Irvine clothing designer the fourth-biggest percentage gainer in U.S. markets. Neither the company nor analysts could offer an explanation for the sharp run-up. The only news the company released was that it has moved its corporate offices to a smaller location to cut costs. Mossimo closed at $4.25, up $1.56, quadrupling its Sept. 21 price of $1. More than 356,000 shares changed hands, more than 10 times the average daily volume of the past three months. At last week's price of $1, Mossimo's value had sunk to $15 million, raising the question of whether the company would maintain its listing on the New York Stock Exchange. A company spokesman would not say whether Mossimo has been approached by a prospective buyer but said, "the company will evaluate any opportunity that makes sense."

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