Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: james m dickerson who wrote (3629)	12/13/1997 11:53:00 PM
From: Dennis W	Read Replies (2) \| Respond to of 6570

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?