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Sunday, 06/24/2012 4:20:27 AM

Sunday, June 24, 2012 4:20:27 AM

Post# of 163718
How to know the short interest?

People here talk about traders who short and stuff like that but it mostly feel like speculations because no one really seems to know the mechanics behind it all.

I don't know the mechanics either, but maybe someone here knows how to get reliable information about the shorts actions in SIAF? However in this post I'll look at it a bit.

I know of this page:
http://www.otcmarkets.com/stock/SIAF/short-sales
According to that page it doesn't seem like there's any huge amount of shorting in SIAF. But I don't know if those figures can be trusted (might be ways to bypass them?).

I also know of
http://regsho.finra.org/regsho-Index.html
which often suggests that about half (maybe less) of the trading volume in SIAF is from shorting.

It appears that the days to cover is usually one day. That should mean that if a trader shorts SIAF on one day he has to cover the next day and rebuy the shares? Maybe the traders can go around this in some way because it feels like one day is a very short time to cover?

Anyway.. It appears to me that the amount of shares that are shorted at any particular point in time is almost never more than say 200 000 shares. 200 000 shares is almost nothing compared to the outstanding shares of SIAF. However if 200 000 (or less) shares are shorted AND covered every day then it could sgnificantly affect the price per share because then shorting would be a very large part of the daily trading volume.

My conclusion of this (I could be wrong) is that:

* The price per share of SIAF is probably affected negatively by shorts because of how the shorts trade during the day. Maybe the shorts sell many shares during thinly traded hours of the day to cause max damage and then they cover.

* There has never been any large shorters (Iron Ridge did not short millions of shares e.t.c.). I say this because the short interest at
http://www.otcmarkets.com/stock/SIAF/short-sales
has never been more than say 120 000 shares tha last year.

Is there a way to short that doesn't show in the statistics? I believe that is the main question that I have. If there isn't I think that my analysis here could be correct.

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