Wave Systems Corp. (fka WAVXQ)

[dig space]

The short numbers are again somewhat interesting. With my standard disclaimer that I see a squeeze as a very unlikely event and so on, the number nevertheless represents pent up buying demand. Moreover, increases in short interest over a defined period represent additional sell-side volume and influence the share price over the same period.

During the 15 days of the last reporting period, short sells represent from 6-12% (net) of the sell-side volume depending on how one counts the volume data presented by Nasdaq i.e. whether they assume sales and buys to be reported as separate trades.

That is a fair chunk of the volume during that period. I cannot pretend to know what the share price would have been in a liquid market in the absence of that additional sell-side supply, but it seems to me at first blush that one could be talking about say, 20 cents.

edit: While days to cover is a waste of time to me in an equity with such wildly swinging trading volume, the bottom line is some 12% of the float is short, and that is a lot regardless of volume.