Replies to post #207982 on Wave Systems Corp. (fka WAVXQ)

[24601]

It seems that you are the one who's learning the ropes.

Three weeks ago you posted this:

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"Days to cover doest mean you have a certain time limit to cover your shorts all it does is explain how many days it would take all shorted positons to be covered thats determined my the average volume in a 10 period. The fewer days you have to cover the better. That prevents you from getting caught in a short squeeze. >>>>>>>>>>>> Days To CoverWhat Does Days To Cover Mean? A measurement of a company's issued shares that are currently shorted, expressed as the number of days required to close out all of the short positions. For example, if a company has average daily volume of 1 million shares and 2 million shares are currently short sold, the shares have a cover rate of 2 days (2M/1M).
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(emphasis supplied)





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[lugan]

Can you please explain the fee structure when your shorted stock rises beyond your account value?

[Workingcapital]

Jermart,

And what is that "other" risk? Thanks.

[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.