I had a pre earnings short, now looking at substantial losses. I can hold the short till $65-70 after which I will probably close. The problem is how long to hold the short. The earnings may one day catch up with the share price. If it is propped up long enough !
The short base is huge and waiting for a fall 16.61 days to cover 12.82% of the total shorted. Or $1.4bn of value shorted ! This certainly indicates a lot of people think this is rubbish share is overvalued - but when and how long to hold ?
There is a high number of insider ownership.
% of Shares Held by All Insider and 5% Owners: 21%
For example STZ is the same
% of Shares Held by All Insider and 5% Owners: 93%
This makes the share price difficult to fall as a large number of the shares are held for ever by the owners.
I suppose I will need to hold till next earnings release.
Another example of this nonsense valuation is NILE. (Blue Nile)