Bipin-
Although that's quite an increase in short interest, relative to total shares outstanding, it's only about 7% (assuming about 50 mil shares out by now). That's a pretty low short number. By way of comparison, another stock I trade, VVUS, has a short interest just under 11 mil out of about 30 mil out for a 33% short.
Since Syquest easily trades several million shares on an active day, I doubt a "short squeeze" on a move up would have much effect on stock price. The good news is that this relatively small short position on SYQT may indicate that investors are reluctant to short the stock at this point, hopefully indicating a fear that the next move by the stock will be a strong move up.
My guess is we may see that this week in anticipation of a greatly improved earnings report (over last qtr). Without additional news, though, the stock will quickly sell off after the earnings report. Hopefully we'll get something on an OEM deal or a new product announcement (i.e. Rocket/higher density EZflyer).
Good Luck,
Joe |
