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Non-Tech : Cityscape Financial (CTYS)

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To: Rational who wrote (883)10/13/1997 9:47:00 AM
From: Mason Barge   of 2544
 
>>Assuming that about a half are available for sorting (since institutions may not lend theirs for shorting), I suppose that shorts have reached a maximum

Sankar: How much do you know about this? I thought I had heard of institutions lending shares under some circumstances, but I would really like to know the source of the rules on this.

If short interest continues that high, it is reaching a dangerous point for shorts. When over 25% of the float is short, it will accelerate stock price on good news, as buy-in pressures become enormous. In other words, although such extremely heavy short interest is negative in the sense of adverse market sentiment, the technical pressure on the stock has already occurred. If a need to cover arises, the high short interest add POSITIVE technical pressure to the stock. So if you are right about being long on fundamentals, short interest is helpful at some point.
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