Replies to post #270120 on Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

Maybe because the lion share of the short position are the MM's and they want to create another swoon under $30 to cover? Right now, I smell a breach of $36, such a breach would mean a rapid trip to $30 and maybe even a retest of the $26 area. Beware if $36 is breached. We painted an ugly candle on that NVEC today .

[schloss_1]

michael-

I couldn't help but see your post on NVEC and since I have been playing it too, I thought I would add some information.

Fidelity is showing the short interest on NVEC at 3.5% which is only .7% more than QLCM or any of the company's other competitors.

53% of all the outstanding shares are owned by insiders and other 5% owners. (I'm not sure whether or not it is legal for insiders to short the company's shares, but I suspect not, since I have never read a story about the abuses inherent in such behavior.)

33% of the shares are held by institutions and mutual funds. (Once again, mutual funds don't short stocks, although institutions like C and JPM might, if they chose to.)

I'm not sure that the 72% outstanding float figure that you mentioned means much, unless you think that the insiders, institutions and mutual funds are flouting the law and shorting against the box.

Zeev may be entirely correct that these shares could head south fast now that overvalued tech issues have come under great pressure, but I don't think that there is a cabal gunning for NVEC. As the volume lately has been low and all the markets are feeling the heat of conflicting news reports, it is only logical that stocks with PEs of 80 will be singled out for punishment. IMHO

schloss