SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Biotech / Medical : GUMM - Eliminate the Common Cold
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: gamesmistress who wrote (120)1/31/1999 11:48:00 AM
From: DanZ  Read Replies (1) of 5582
 
Gina,

I communicate with other traders during the day on IRC and can tell you that they have not been able to short GUMM. I'm long by the way, and do not think that one should short GUMM for more than a quick in and out trade based on reading the tape. A short might wake up one day to a huge gap up opening and I don't think it's worth holding a short position overnight.

Based on readings on SI and Yahoo, it seems that others are also having trouble shorting GUMM. I don't know the reason for this but it could have something to do with the number of shares already sold short versus the number of shares in the float. Here is the data effective January 1999.

Shares outstanding: 6.85 million
Shares in the float: 5.60 million
Shares sold short: 847,179 shares

Some of the long shares are probably held in cash accounts, further restricting the number of shares available to short. Another reason that brokerage firms might be restricting short sales in GUMM is because of the increased volatility.

I'm interested in how you think this affects the stability of GUMM. I would think that it would reduce the supply of stock available. If the demand for GUMM suddenly increases, a huge squeeze would be likely.

Dan
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News