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KHGT, signed definitive agreement with Honeymark International. Eyes on for move Monday!
KHGT, signed definitive agreement with Honeymark International. Eyes on for move Monday!
Welcome Pierre!
Finally, knew we had something coming. This is gonna be fun this week.
Short Interest: What It Tells Us
April 23 2011| Filed Under » New York Stock Exchange, Short Selling
As some of you may already know, short selling allows a person to profit from a falling stock. The existence of this ability to short sell a stock should not come as a surprise as stock prices are constantly rising and falling. Thus, there are brokerage departments and firms whose sole purpose is to research deteriorating companies that are prime short-selling candidates. These firms pore over financial statements looking for weaknesses that the market may not have discounted yet or a company that is simply overvalued. One factor they look at is called short interest, which serves as a market-sentiment indicator. We'll cover it in detail in this article.
Tutorial: How To Use Short Selling
A Review of Short Selling
Essentially, short selling is the opposite of buying stocks - it's the selling of a security that the seller does not own, done in the hope that the price will fall. If you feel a particular security's price, let's say the stock of a struggling company, will fall, you can borrow the stock from your broker-dealer, sell it and get the proceeds from the sale. If, after a period of time, the stock price declines, you can "close out" the position by buying the stock on the open market at the lower price, return the stock to your dealer-broker and realize a gain.
The catch is, if the stock price rises, you lose money because you have to buy the stock back at a higher price. In addition, your broker-dealer can demand that the position be closed out at any time, regardless of the stock price. However, this demand typically occurs only if the dealer-broker feels that the creditworthiness of the borrower is too risky for the firm.
Short Interest
Short interest is the total number of shares of a particular stock that have been sold short by investors but have not yet been covered or closed out. This can be expressed as a number or as a percentage.
When expressed as a percentage, short interest is the number of shorted shares divided by the number of shares outstanding. For example, a stock with 1.5 million shares sold short and 10 million shares outstanding has a short interest of 15% (1.5 million/10 million = 15%).
Most stock exchanges track the short interest in each stock and issue reports at month's end. These reports are great for traders because by showing what short sellers are doing, they allow investors to gauge overall market sentiment surrounding a particular stock. Alternatively, most exchanges provide an online tool to calculate short interest for a particular security.
Reading Short Interest
A large increase or decrease in a stock's short interest from the previous month can be a very telling indicator of investor sentiment. Let's say that Microsoft's short interest increased by 10% in one month. This means that there was a 10% increase in the number of people who believe the stock price will decrease. Such a significant shift provides good reason for investors to find out more. We would need to check the current research and any recent news reports to see what is happening with the company and why more investors are selling its stock.
A high short-interest stock should be approached with extreme caution but not necessarily avoided at all cost. Short sellers (like all investors) aren't perfect and have been known to be wrong from time to time.
In fact, many contrarian investors use short interest as a tool to determine the direction of the market. The rationale is that if everyone is selling, then the stock is already at its low and can only move up. Thus, contrarians feel that a high short-interest ratio (which we will discuss below) is bullish - because eventually there will be significant upward pressure on the stock's price as short sellers cover their short positions (i.e. buy back the stocks they borrowed to return to the lender). (Learn more in Can Perpetual Contrarians Profit As Traders?)
Short-Interest Ratio
The short-interest ratio is the number of shares sold short (short interest) divided by average daily volume. This is often called the "days-to-cover ratio" because it determines, based on the stock's average trading volume, how many days it will take short sellers to cover their positions if positive news about the company lifts the price.
Again, let's assume Microsoft has a short interest of 75 million shares, while the average daily volume of shares traded is 70 million. Doing a quick and easy calculation (75,000,000/70,000,000), we find that it would take 1.07 days for all of the short sellers to cover their positions. The higher the ratio, the longer it will take to buy back the borrowed shares - an important factor upon which traders or investors decide whether to take a short position. Typically, if the days to cover stretch past eight or more days, covering a short position could prove difficult.
The NYSE Short Interest Ratio
The New York Stock Exchange short-interest ratio is another great metric that can be used to determine the sentiment of the overall market. The NYSE short-interest ratio is the same as short interest except it is calculated as monthly short interest on the entire exchange divided by the average daily volume of the NYSE for the last month.
For example, suppose there are five billion shares sold short in August and the average daily volume on the NYSE for the same period is one billion shares per day. This gives us a NYSE short-interest ratio of five (five billion /one billion). This means that, on average, it will take five days to cover the entire short position on the NYSE. In theory a higher NYSE short interest ratio indicates a more bearish sentiment towards the exchange.
Short Squeeze
Some bullish investors see high short interest as an opportunity. This outlook is based on the short interest theory. The rationale is, if you are short selling a stock and the stock keeps rising rather than falling, you'll most likely want to get out before you lose your shirt. A short squeeze occurs when short sellers are scrambling to replace their borrowed stock, thereby increasing demand and decreasing supply, forcing prices up. Short squeezes tend to occur more often in smaller cap stocks, which have a very small float (supply), but large caps are certainly not immune to this situation.
If a stock has a high short interest, short positions may be forced to liquidate and cover their position by purchasing the stock. If a short squeeze occurs and enough short sellers buy back the stock, the price could go even higher. Unfortunately, however, this is a very difficult phenomenon to predict. (Find out how this strategy is used in Short Squeeze The Last Drop Of Profit From Market Moves.)
The Bottom Line
Although it can be a telling indicator, an investment decision should not be based entirely on a stock's short interest; however, investors often overlook this ratio despite its widespread availability. Unlike the fundamentals of a company, the short interest requires little or no calculations. Half a minute of time to look up short interest can help provide valuable insight into what sentiment investors have toward a particular company or exchange.
For related reading, see When To Short A Stock.
Read more: www.investopedia.com/articles/01/082201.asp#ixzz2Nk2gmnut
Here's a link for the short data
http://otcshortreport.com/index.php?index=redg&action=view
That was the previous business model as Castor before they went into a different direction and purchased Red Giant.
I think the Red Giant needs his friend Hulk the Green Giant to come and help offer up a good biotch slap!
ARCA not buying. Sitting on the Ask and dumping shares.
The multi million dollar printing deal by his own other company that they already had a working relationship??? That's not much up their sleeve.
Could Benny Powell being the big comic book guru he is actually want to see REDG be one of the worst promos or could he be setting this up like a comic book. Hero comes in looks good gets sent to crushing defeat only to come back and be the hero by going on epic run??????????
Wouldn't that be Awesome!PS I'll just keep drinking the green beer this weekend! Might have to switch to something a bit stronger to convince myself of that one!
I don't really believe it will be APS but i know stranger things have happened. Got stopped out and bought back in looking for the run as 4 or 5 fluff emails on a 500k promo was a joke and thought we were in for one more run. I averaged down to about .06 and would have dumped but I watched WDCO soak up at least 10-15 million shares that I was actually paying attention to mon-wed stayed off the top of the bid on Thursday while ARCA dumped relentlessly and then saw WDCO jump back on the bid Friday when ARCA was gone. They have sat on the ask at a dime all week. Thinking there should be another pop coming here whether VM picks back up, another promo covers or nothing at all. From what I can tell WDCO is not a typical retailer and would not be loading shares at well above current pps to see this drop sub penny. Better judgement here tells me I'm reading more into it but at my current avg I'm better off riding this game out looking for one decent pop.
Ken your totally right and a bunch of us got duped into playing the dips here. What's your take on the L2 action and the amount of shares being picked up especially by the likes of WDCO?
It's Friday, drink up!
ARCA totally gone??????
Definitely a shot. WDCO seemingly has loaded millions of shares all week.
???? What you say makes no sense!!! Company will be outta shares at some point. If that was the case every body would be better off dumping instead of letting go to no bid and losing everything! Shorty would love that though:0
Been there all week. Absorbed millions of shares. Who knows what it means but interesting they keep jumping in to hold bid.
I agree with you:)-
CORAL SPRINGS, Fla., March 14, 2013 /PRNewswire via COMTEX/ -- DMH International (OTCBB: DMHI), announced that their wholly-owned subsidiary, Touch Medical Solutions, Inc (TMSI) has started the rollout of their medical imaging software suite, TouchPACS. The software is approved by the FDA as a Class II medical device. The first step of the rollout is the process of selecting beta partners to begin using the software.
"The marketing of our PACS software has now begun in earnest," explained Rik J Deitsch, CEO of DMH International. "TouchPACS is now being marketed and demonstrated to hospitals, clinics, radiology centers and physician offices for all of their imaging needs. Our expectation is to develop a dozen beta sites over the next several months," he concluded.
TouchPACS is a cutting edge software suite for the PACS medical imaging market (Picture Archiving and Communications Systems). The market was valued at approximately $2.8 billion in 2010 and it is expected to grow to over $5.4 billion by 2017, according to MarketResearch.com, a research firm based out of Rockville, Md.
Your right this time! If you call selecting beta partners (finding people to use their product and make it work right) NEWS.
I would agree with you here. Again it is a gamble but the PR thus far has been a joke for the caliber of promo it should be and L2 bid support, blocks absorbed and sales under the spread got me thinking otherwise.
True. If that's what you want don't invest in any promo stocks period!
Still holding and actually averaged down a bit today to .07 even after I said I was done throwing money into this POS. Is promo done? Got news today, Last email was yesterday, could still see one. The L2 action is the most interesting thing here. The pps is holding/being held up for a reason. Large block movement and trades under the spread. Still think something's up here. Whether we see a small pop or major PWEI type move don't know. Have to pay to play. This is gambling at its finest and I'm a gambling man by nature! GL to everyone here!
Should get news eventually here. If you don't mind waiting load and hold.
Based on revenues, yes.
Ok so APS comes out with this on monday
If our due diligence is completed fast enough, we might even reveal our new pick this week!
WDCO moved bid up from .031 to .036. Don't know if it means anything at this point. They have absorbed a ton of shares.
Probably still sleeping. Will get yesterday's recap email soon! LOL
with ya here
I guess you are hating moments like this
We’re still confident that we will see some MAJOR developments in the coming days that will put this great company in a class of their own!
Thanks Boom! Starting to think I was losing it here!
I hear ya but we are talking $170k in buys which didn't even move them off the bid not to mention the rest of the buys all day long. Don't think this is APS but thinking not might be done yet.
MM Games. Nite holding bid all morning. VNDM comes in and takes out the bid support letting buys go through and then Arca jumps back on the ask. WDCO sitting at .031 on the bid all morning after holding up bid yesterday. Need some momo here!
Get yourself a scottrade or etrade account.
Anyone else noticing Nite sitting on bid at .0465 and transactions going through at .044-.045????
Everyone is out for your money!
Would be fun!LOL
Since we are going to investing 101 here is a description of insider trading. Non-public information can't be released except by REDG, so unless they issue news we aren't going to know. Would love to see filing of insider trades but if news was that great, would there be a need for this promo????
Insider trading is the trading of a corporation's stock or other securities (such as bonds or stock options) by individuals with access to non-public information about the company. In most countries, trading by corporate insiders such as officers, key employees, directors, and large shareholders may be legal, if this trading is done in a way that does not take advantage of non-public information.
However, the term is frequently used to refer to a practice in which an insider or a related party trades based on material non-public information obtained during the performance of the insider's duties at the corporation, or otherwise in breach of a fiduciary or other relationship of trust and confidence or where the non-public information was misappropriated from the company.[1]
In the United States and several other jurisdictions, trading conducted by corporate officers, key employees, directors, or significant shareholders (in the US, defined as beneficial owners of 10% or more of the firm's equity securities) must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. Many[citation needed] investors follow the summaries of these insider trades in the hope that mimicking these trades will be profitable. While "legal" insider trading cannot be based on material non-public information, some investors believe[citation needed] corporate insiders nonetheless may have better insights into the health of a corporation (broadly speaking) and that their trades otherwise convey important information (such as about the pending retirement of an important officer selling shares, greater commitment to the corporation by officers purchasing shares).
promotion stock secrets - paid monthly subscription. Even then you never know when these tickers are going to drop or get announced. Same day this was announced as VM, earlier that day everyone was thinking it was DMHeye and took everyone for a nice chunk of change. APS has paid service to get first announcement of their picks, too.