Hi Sue,
Yes, you are right. About 55% of the float is held short. But because of the size of the float relative to the average daily trading volume, this translates to a little over 7 sessions worth of trading, (i.e., the "short ratio"). This is about the same short ratio as RNWK, where only 12% of the trading float is held sort:
finance.yahoo.com
finance.yahoo.com
The comparison with RNWK is interesting. RNWK is overbought and in a sideways consolidation with a clear bias towards beakout to the upside:
139.142.147.218
RNWK weekly chart:
stockcharts.com[w,a]waclyyay[df][pb40][vc60]&pref=G
In contrast, DECK is oversold, in an uptrend, and on the weekly chart has formed a reversal candle:
139.142.147.218
stockcharts.com[w,a]waclyyay[df][pb40][vc60]&pref=G
But... DECK has moved with QQQQ, has corrected all this year, and has closed below the 200 sma with a bear cross threatening:
stockcharts.com[w,a]daclyyay[dc][pb50!b200][vc60]&pref=G
So while the risk of a short squeeze is about the same with each stock just looking at the short ratio, clearly this short ratio means different things because of the context of the stock. The bottom line is that I would rather have a long position in RNWK when it gets into oversold territory, because a short ratio there will likely translate into a stronger move to the upside, partly because RNWK has moved sideways and held its ground and periodically rallied even while QQQQ and DECK were correcting. So, it is a stronger stock to me (note the relative strengths compared to the $NDX).
T |
