1,550,000. That number represents the reduction in short interest from June 1st to July 31st. Does that number signify an increasing belief that Melafind is more then a "toy"? My opinion is that it does. regards endo
Endo - I went back to the start of June, and picked up these inferences:
The stock has closed up on 25 days, and down on 23. But the shares bought on up days totaled 6.9 million shares, while the stock bought on the down days totaled only 5.2 million shares. Finally, with respect to volume the upd day volumes were at 277,000 shares while the down day volumes were at only 227,000 shares, or about 18% below the up day avg volumes. Every bit of that is positive to me, and indicative of the shorts beginning to unwind. I think though that we have at least one and maybe two more chances for a hellofa short squeeze left, and I'm ready for that to happen. The thing that I'm a bit worried about, as noted in an earlier e-mail, is what will be the impetus for the squeeze to begin - but then again, time itself is a deviant impetus, and who knows what type of news/magazine article, or TV show may set this on fire.
Real short squeezes, as in the violent spikes caused by shorts not being able to cover, are exceedingly rare, even when the outstanding short interest is significant. This is not to say that we can't get a sweet rally with the right catalyst. But the short crushing squeeze that the longs would love to see is unlikely to happen. Still it doesn't need to triple overnight for the longs to get some satisfaction.
The other thing for true long term investors in MELA (vs trader) is that those violent short squeezes are only temporary, although it will spook the shorts and keep them away from the company in the future.