Hi Greg, 3-4 mos ago, Zeev observed that CC would probably engage in "hedging" (shorting) to protect its position. Since that time the rationale has been expanded on by one or two others, including Larry. The explanation was accepted by me, but not by most, probably because it was brought up first during the context of the "death spiral" debate, etc. Since that time, the theory has been gaining gradual acceptance and now the conventional wisdom is that CC is shorting up to 30,000 shares a day; actually it's based on a formula that was covered in a post by Rich not long ago. I'm not an expert on this matter, so I would refer you to Zeev's posts during the "death spiral" debate as providing the clearest explanation of these activities. Also, as mentioned, Larry and Rich.
One observation; I don't see the "normal" banter from presumed shorts and naysayers on this thread. That can be good or bad, but generally, I think it is a good sign when naysayers are active. Remember the "rules" of this game posted here earlier. On the plus side, there is a spammer on Yahoo who apparently moonlights for short interests, and this person has been very active. Apparently, they are nervous at this particular crossroads, and are attempting to "talk" the stock down. AS always, IMO! |
