Mad2, we do hear often: when the last bear covered, then the stock tends to fall.
What I can't estimate how much distorted that number is by shortselling in front of exercises, conversion etc. That makes the number so difficult to interpret.
But, when the rallye has been built on short covering then:
-those one who covered expect not much lower prices...
Historically, as the short interest decreased mainly in Dec, Jan and Feb at the same or even better prices than now, it is expected to go much higher.
But, as for Sam Nizam, was the short interest higher in this "transition period" we are now, it could the price drive higher in shorter time together with new purchases.
For the fun ride, we will see. Much depends on how the insiders treat the stock right now and in the next weeks. I don't negate that they are willing to learn..., maybe they get an investment advisor who gives them a better advice in the future.
In the same time, other stocks, like DCLK, ITVU, EGGS or SOF went out and did a secondary placement refilling their coffers, which is "usually" bullish for the stock.
C.
Question: Would Yahoo, or AMZN have hit 450 or 600 (pre-split) if the insiders went out and delivered stock in similar qualtities from options exercises into any rallye?
NAVR insiders, please learn. |
