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Re: moe_the_gyp01 post# 7433

Tuesday, 05/29/2012 4:24:24 PM

Tuesday, May 29, 2012 4:24:24 PM

Post# of 49433
Short Selling Indicators…According to Data Explorers, the demand to borrow is “strong,” and 70 percent of the available shares are out on loan.... Last Week 8 percent of the free float of the company was short with 33 million shares out on loan and the cost to borrow, higher than most other Internet stocks…

Another indication of short-selling interest in Facebook is the volume of put options, giving an owner the right to sell shares at a specific price; some market players have bought put options that would pay if the stock falls below $22; still it may be a while before the shorts really go after Facebook in force - as Insider restrictions come off in 90 days from the IPO date and I’m pretty sure they will all be selling to cover their pre-IPO spending sprees. Right after that I see the Squeeze - when the $8-11 range is achieved, 8-11X valuation based on revenues, there should be strong demand putting pressure on unavailable shares;

IMO of course
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