The Rising Influence of Rising Affluence

[Democritus_of_Abdera]

CLF short interest - #1 on NYSE as % of Float

I had expected that the number of CLF shares sold short would have peaked just prior to the earnings report on 4/28… But I was wrong… CLF now boasts the highest short interest as a percentage of the Float on the NYSE (see: http://online.wsj.com/mdc/public/page/2_3062-nyseshort-highlites.html ).

The short interest actually increased by a percentage to 53.2% of the float.

In the long run, I don’t think that the short interest has a significant effect on a stock’s value …. it is the earnings and management that count.

But when the short interest represents over 50% of the float, as is the case for CLF now, then I believe that it plays a major role in the day-to-day volatility.