Flybabyfly....
I never really trust short interest numbers.Sure they are close if you take any stock from 20 to 2.00 or 70 to 1.00 then one can expect around 35++% of the shares to be short all the time especially if stock has not rebounded tripping hidden "buy to cover programs" etc...My DNDN was 51% short which was true because we opened twice from 3.00 halt to 19+ Talk about money coming out the wazoo.....Man those were Fantastic gaps.
A good example is look at after our famous virus dropped many stocks to single low digits as HFT and algos just creamed to the downside.Many stocks one by one retraced on mainly short squeezes around 50% max.
I love short squeezes and hidden land mines being "buy to cover programs.The stock needs heavy volume and has to go a few points until they are tripped.A huge bunch of shorts at 20.00 on any stock may pile on more and drive a price down to say 3.00..stock could rise slowly for a few days and go to 6 dollars and never really tripping any buy to cover programs.Why? because the shorts at 20.00 to 3.00 have a gain of 17.00 per share for the time being. They are betting and hoping the stock goes only up a few points then rests,,,,followed by more crummy market conditions it drops back to say 4.00 range and sits. They remain short still.
Stock then suffers and drops further over the months.Shorts still in great shape.Only should the stock then partner with someone,get a huge dollar amount contract,new product launch etc...would it run back over that 6 range and start tripping short cover-buy to cover programs.
In my experience I would think ours are hidden in the 6 dollar range since many shorts have remained short for years..maybe even a decade on TMDI..Last I read they can stay short into BK -ing a company they are holding short never returning borrowed shares and their gains are tax free. You might want read up on that as I found it quite rewarding for them and seems like a huge loophole that has never been closed....
Thanks Roll
