Take EBAY; Has a Float of 244 million shares. I gave a buy recommendation at 55 solely on the basis of its ratio of Shorts outstanding to Supply that is tradable. Investors have removed sufficient quantity of EBAY last July 02 to predict todays price of 109 and change. There is Investor demand for ebay that exceeds the available supply, each day the traders share of the free float is being eaten up, and the supply imbalance gets worse for the accumulated short position. Print a Chart of 2 years worth of EBAY and look at that chart with the numbers below to see how come EBAY has gained 100%. It is supply and demand, and right now the situation is no better than it was when the stock was 55.
1 EBAY eBay Inc. Short Open Interest
Date Short Avg Daily Vol
06/10 18,100,000
05/03 19,984,157 7,134,717 2.80
04/03 20,957,608 7,563,446 2.77
03/03 22,956,547 5,188,729 4.42 A
02/03 20,732,907 6,754,530 3.07
01/03 20,698,628 5,535,605 3.74
12/02 19,441,783 6,014,511 3.23
11/02 20,584,167 7,065,545 2.91
10/02 21,894,521 7,958,944 2.75
09/02 23,700,866 6,118,437 3.87
08/02 24,627,783 12,389,365 1.99
07/02 16,385,100 8,655,218 1.89
06/02 15,052,963 5,270,772 2.86 |
