Jim, I'm surprised to read there are so many short shares out there. The short sellers must be a pretty confident bunch, because it seems to me that being a short seller who hasn't covered his bet by this time with so many other short shares outstanding would be a pretty risky position. Zenith's stock price is getting pretty close to its historic low, and this stock has taken sudden dramatic jumps in the past. If I were a short seller, with the price of the stock already fairly low, I would be in fear of a sudden major positive news announcement that would send the price of the stock soaring and me competing with other short sellers to cover my position.
Are there really 8,000,000 Zenith short shares out there? Is it possible for a short seller to wait too long to cover? Some day these short sellers will have to buy shares to cover their positions, won't they? Based on recent sales history, isn't 8,000,000 shares more than a 2-3 week supply? What would happen to the price of Zenith stock if all of these short sellers had to cover fairly quickly?
Jim, Scott, anyone, is my thinking wrong? |
