25 Percent of the Float! It's not going to take much to trigger a " Short Covering " Rally! Sorry, KKD is just to good to pass up at this price! Sure it may pull-back a bit lower, I just can't wait any longer!!!!!
Good luck investors....
Average Volume (3 month)3: 1,337,820
Average Volume (10 day)3: 4,426,110
Shares Outstanding6: 64.75M
% Held by Insiders4: 27.68%
% Held by Institutions4: 63.80%
Shares Short (as of 10-Aug-07)3: 16.02M
Short Ratio (as of 10-Aug-07)3: 18.7
Short % of Float (as of 10-Aug-07)3: 25.00%
Shares Short (prior month)3: 16.69M
Long time since I have been called a newbie at anything...I can tell you all the gloom and doom talk is a little overdone here.........the stock has tanked..it will recover..simple as that...panic selling happens all the time...amateur shorting happens all the time as well....if you really want to make cash-- short a stock before it tanks!!! DUH!!!
<It's not going to take much to trigger a short covering rally>
Like a Moody's downgrade? Hmm...guess not.
Actually I think short covering is the only thing keeping this above $3 right now. I would bet that short interest declines substantially when we next see the numbers.
That Moody's "downgrade" sure helped some big player(s) to cover their massive shorts on the cheap, and shortly after, go long.
Viewed in that way, the so-called "downgrade" makes the stock more bullish than if no "downgrade" was made.
Sure the "downgrade" leads to predictable selling by the sheep, but then what's a "downgrade" for?
If the public are selling at the lows on "downgrades", guess who are buying?
In fact, another rebound from $3 (but very mild in extent) before dropping it below $3 is probably in the works. Purpose? To confound, demoralize and shake out the individual bulls, in preparation for a final bottom and the subsequent true price run-up, with the majority of the public bulls too confused, scared and demoralized to be long, and the public bears too emboldened and cocky to cover, and therefore missing it entirely.
Then some alibi will be published in the media to "explain" the price run-up, and no one would be the wiser, at least not the majority of non-thinkers who are conditioned to believe what they are told by the TV talking heads since kindergarten.
What would motivate a short to cover? The next 12 months will show nothing but writedowns as liquidation goes on and operating losses as KKD struggles to reduce overhead as they reduce revenues. I am quite interested in seeing what kind of profits they can produce after shrinking back to their heritage markets and developing international franchisees.