The short position in QDEK on 9/15/98 was 2,250,157 shares. On 8/16/98 it was 986,711. Both figures are from this week's Barron's.
The average daily volume is 810,816 - same source. In my opinion, not a high short ratio to days to fill but there had to be a reason for the increase - maybe a hedge against something - it is hard for me to imagine someone looking to make some coins per share on a short trade only, because even if it moves to a buck it is a losing trade. The rules of borrowing securities to short, if I remember correctly, the stock can only be lent from a margin account. If I understand correctly, at under a $1.00 and with the increase short position, there might be a limited supply in margin accounts; and accordingly, if it is sold by the account from which it was originally borrowed from, and the brokerage firm can not find another source to borrow from, then, if I understand what happens, the short seller must cover because the borrower has to return the borrowed security to the original owner who has sold it. The aforementioned might be one of the reasons for printing the message. |
