Short Interest continues to climb along with the stock price. Since January the stock has gained almost 800% while the short interest rather than dropping in sync has actually increased by approximately 1 million shares. This means that at the least, 25% of the total short shares are now under water. This last month alone (April 15-May 15 )has seen a 31% rise in the stock price accompanied by an 11% increase in shares short (see the numbers below).
I think that unreasonable emotions are dictating some of the interest in shorting this stock much in the same way as unrealistic expectations drove the stock price to unrealistic heights in the past. It may be that we will actually continue to see short interest grow as the stock price continues to climb. However for a company with such a small float this tactic is not without considerable risk as new institutional investors climb aboard and effectively reduce the actually amount of stock in circulation.
While all this is interesting there is no doubt that the coming business numbers will really tell the story for this stock. We have been given guidance of $1 million in revenue for the quarter ending March 31st. I expect this number to be somewhat conservative. However it is the following quarters that will tell the story. Exponential revenue growth coupled with the opening of new markets with N-Charge as well as the emergence of K-Charge large format batteries is needed to justify the current price trend. Should that be forthcoming than I think the future looks good.
I should add that recent research seems to indicate that the first 42volt battery assist vehicles slated to appear from GMC and maybe others by the end of this year look to have lead acid batteries rather than lithium polymer. Whether these reports are accurate or not only time will tell. Definitely a disappointment if true.
Happy investing.............Jacques
---------------------Shares Short---------Vol--------Days to Cover
May 15, 2003...... 3,900,232...... 407,813...... 9.56
Apr 15, 2003...... 3,522,175...... 295,265...... 11.93
Mar 14, 2003...... 3,291,492...... 100,021...... 32.91
Feb 14, 2003...... 3,010,553...... 156,431...... 19.25
Jan 15, 2003...... 2,955,096...... 258,841...... 11.42 |
