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BlackBerry Limited Message Board

  • stocktrader3349 stocktrader3349 Jun 26, 2013 6:03 AM Flag

    Worst Case For Shorts

    With 180 million plus shares short and another 12 million short on the Toronto Stock Exchange TNX their could be a big squeeze.

    Morgan Stanley put out a memo yesterday about the possibility for a big squeeze. It was mentioned by Jim Cramer during his Six Stocks In 60 Seconds and reiterated later in the day by CNBC's Jackie Deangelo.

    There are 524 million shares outstanding. If BBRY Blows out earnings and I mean earnings of .25 cents per share or more there will be a squeeze.

    Look at Tesla Motors. I know it is a completely different animal. This is a turn around, that is a start up and I don't expect that much of a potential squeeze.

    Tesla had a 50% short interest.

    Tesla was suppose to lose money for the quarter. It turned a 15 million dollar profit.

    Here is the comparison. Shorts of Tesla could not cover because there were no shares to buy. It sent the price up 32% in the next trading day and continued rising for about a week almost up 60%.

    Now I don't expect that kind of squeeze, but if BBRY sells through more than 3.5 million units this could send this stock to the 20 to 22 dollar range and the shorts screaming.

    The price will rise, but the shorts orders will not be filled because there is not enough shares available to buy back.

    It is just food for thought.

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