Pixar stock short positions SOAR TO ALL-TIME HIGH
Here is a list of short positions by months:
Date # of shares shorted days to cover (# shorted / avg vol)
3/99 2881285 23.37
2/99 2967175 12.8
1/99 2943760 9.15
12/98 2866223 5.17
11/98 2378931 5.54
10/98 1788624 6.43
9/98 2131535 7.37
8/98 1742858 7.05
7/98 1507937 3.34
6/98 1352987 11.78
5/98 1503574 8.95
4/98 1746420 16.65
In the 6/98 to 7/98 short squeeze, the stock price went from $40 to $66 in one month. the days to cover in 6/98 was 11.78.
the subsequent collapse of the stock price from $45 to $30 in 8-98 to 9-98, the shares shorted increase roughtly 400K.
The recovery of the price from $30 back to $45 in 9-98 to 10-98, the shares shorted was reduced roughly 400K.
From 11-98 to 12-98, the short interest increase by 487K, while the price collapse from $50 to $40.
Since then, the short interests have not changed that much, while the daily volume traded has reduced from 554K to 123K from 12-98 to 3-99,
indicating the longs sit tight and are not willing to give up their shares, and potential shorts are not willing to short more, while the actual shorts did not cover their short position.
It is either the longs are wrong, in which case the stock price will collapse into $30 and find its support.
Or, the shorts are wrong, in which case merely a reduction of 400K in short interest will drive up the stock to $50.
The best way the longs can protect themselves is by requesting the delivery of their PIXR stock to their home, with the belief that the stock will have the potential to rise, given the good box office numbers, the release of ABL home video, and the anticipated release of Toy Story II in Thanksgiving of 1999. The cost of converting to the actual stock certificate, as comparing to the potential money that can be earned from a short squeeze, is minimal.
Remember, there are only 7.2 millions, or 7200K of shares floating in public.
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