Will Mossimo Surf Back into Style?

Mossimo (MGX Quote), the once-hot clothing manufacturer that was booted from investors' A-list in 1997 when sales and profits collapsed, has seen its stock come back in recent weeks.

Shares of the Irvine, Calif.-based company soared almost 400% this month to a 52-week high of 14 5/8 Monday after trading around 3 for months. On Tuesday, shares eased back to 11 3/4.

While bulls are betting that a new management team can reposition Mossimo on the financial runway, skeptics question the company's ability to once again become a glamorous brand, in part because its cash position is less than extravagant. ...