"I'm going to read past CUBE proxies before I accept 42 %
Regarding shorts knowing as much as we do let me say that we didn't expect
what happened to VCD sales and of course the shorts did. What else do they
know ? I've held since $50 although covered call profits lowered my effective
price to upper $30s and to my dismay I passed on several opportunities to
actually sell CUBE for a profit. So here I sit with paper losses and even with
my recent average down price $17 1/4 I'm still disappointed. If I get the chance
to break even I'm outta here."
Patrice,
Here are several points you may want to consider in your analysis of CUBE:
1. The shorts happened to be right when CUBE was at $50. This does not prove that they knew anything the longs didn't know. CUBE was overvalued at $50 a year ago using traditional fundamental criteria. The current short interest may, but also might not, consist of the original shorts.
2. Yes, there are 10 million short shares. At the same time, there are 46 million long shares. Academic studies have shown that the short interest ratio (for the market as a whole) is a contrarian indicator, i.e. a high short interest is bullish. Shorts are not necessarily special by virtue of their being short.
3. Total executive officer and director holdings at December 31, 1996, were 2,255,127 shares, or 6.1% of the total. I don't know where IBD gets its numbers.
Regards,
Winston |
