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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (1223)	6/22/1998 5:04:00 AM
From: Q.	Read Replies (1) \| Respond to of 2506

re <<HPRT's short interest is significant at about 2 million in a 9 million float. Can you foresee anything which would induce a squeeze?>> news, of course can do a lot to the stock of a co. with a single product. Hanky panky (officers moving shares from margin to cash accounts) could do it too. They own 45% of the outstanding common. Short interest works out to 6 days, which is not that high. There is a lot of volume in this stock, so that helps mitigate the effect of the high fraction of float that is short Anyway, short interest has been at these levels for a year now, and the stock has mostly just gone down, so I figure if there hasn't been a squeeze yet, and conditions haven't changed, why should there be one now? As for shorting stocks that are going down: The statistics presented by O'Shaugnessy in his book "what works on wall street" show that the stocks with the lowest 1-year relative strength are the least likely to go up over the following year.