If you are going to reply with an attitude, at least do it with some facts to back it up. MAN!
SHORT RATIO!! not SHORT INTEREST!!!
Short Ratio (as of 10-Jun-05): 7.7
I will teach you.
Short ratio is the number of trading sessions at average daily volume, it would take to close out the existing short interest of 2.3%.
Now, considering that over 90% of the float is in the hands of the institutions, that amplifies those figures even more because there are even less shares to grab.
This is a GREAT SHORT SQUEEZE.
So your opinion about where the stock is and being "correctly valued" don't hold much weight. YOu obviously don't understand what you are talking about. MAN!
Try some manners next time. I just tried to provide information that was not public yet.
1. The stock was upgraded.
2. The stock has a HUGE short RATIO (not short interest, although the short interest is amplified due to the fact that institutions own over 90% of the stock, so 2.3% is really much higher when you consider that just about all the shares available are shorted. Yes, some of the institutions probably are short and hence can stay short if they control a large interest. But if the retailers get squeezed, this could cause the stock to rally, along with the upgrade, and then the inst. would have to follow suite)
It's a spec play. THe stock could be worth 50 or 100, I don't care. I played the short ratio and days to cover.
If you are long, WATCH THE VOLUME. If it's about the 10 day average, then SHORT COVERING IS STILL ABOUND AND PRICE SHOULD MOVE HIGHER.
the fact that 90% of the stock is owned by institutions has no bearing on whether those shares are borrowable. It depends if the stock is held in street name or not. in fact, most institutions do not hold stock in their own name and thus, their stock is more likely to be borrowable. The short interest in this stock is not high, in my opinion. and for that matter, buying/hoping for a short squeeze is cited on every board as a reason to own a stock, but most studies of short interest have shown that high short interest stocks underperfom low short interest stocks. Most short sellers, at least those who are not retail, spend far more time analyzing short ideas and have much more to lose. I would rather own a low short interest stock where growth-oriented long funds are buying. They have far more fuel than any short seller can provide