You might be surprised.... there are some stocks that have unbelievable short interest that have rallied like crazy.
TZOO, for example, has gone up over 1000% over the past year, but has about 70% of the float held short.
Personally, I very much like that sort of thing, because it blunts downside risk and can often lead to enhanced upside.
With BB stocks, the shorting situation is different, but the same sort of thing can happen. SPDV was a spectacular recent example. Just check out the spikes in volume and price during the repetitive short squeezes that began in Jan 2004 (the first spike in 2003 was not a short squeeze, since there was no volume spike there):
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This is an interesting stock, by the way. They built the engine for Burt Rutan's spacecraft, but if you get on their website, you will see they are not a one-trick pony. You might ask your husband about this company and their technology and prospects going forward. I'd be interested to hear his take.
By the way, I have no position in SPDV, but did trade them once or twice successfully. This was one that I considered buying a longer-term investment in. SPDV is currently testing chart support, but I would rather see the stock correct some more.
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