"Maybe you can answer this question for me with your chart voodoo: What exactly do you look for to find out the amount of shares that are in a sold short position and eventualy have to be covered? If you need a subscription tell me through who and how much it is. In the interim could you tell me the answer to this question as it relates to CHKP?"
Thanks for your kind words. Not all shorts are obnoxious bastards. If there is some way for me to make a buck and for you to do the same, that's what I would like to see. Unfortunately the MM's and insiders will get most of the money and chances are one of us, if not both, will be screwed. But ah, such is life.
About short interest: The figures for short-interest is something new that traders have to work with. Ten years ago that was considered priviledged information and nobody knew how many short interest was out there.
These days, the SEC forces the exchange to reveal that information on a monthly basis. As such, it's not particularly useful information. To make matters worse, the figure can be distorted when people "short against the box" (i.e. shorting a security that you are also long in.)
So in summary, I mostly ignore short interest figures. A large amount of shorting won't help or hurt the stock, but it will make its price movement more exaggerated whether it moves up or down.
However, I do stay away from stocks that have close to their entire float shorted. No Krispy Kreme for me, thank you. Stocks like that tend to take on a dynamic all their own, and the MM's have too much ability to driving the price up for no reason as they squeeze the shorts dry.
I forgot what the short interest in this company was posted last. Didn't look very big considering its chart. So I'm not worried. I'm sure, however, after the breach of $20 a bunch of new shorts got on board.
No Freudian slip. I have to say that as much as I disagree with you, I have to commend you on the manner in which you state your case. Many times bitter people come in and write something very brief that makes little sense. You don't do that and it is appreciated; reather you give logical reasoning for your stance. That being said, I can't allow myself to see your stance clearly. See you are a technician, chart guy, momentem trader, or whatever you wish to call it. I am a value guy who looks at and analyzes earnings numbers. I'm self admitingly speculating on this one because I am not planning on being in long term. I believe that CHKP's management will continue to underestimate their earnings growth (guidance) specifically to beat their numbers at every conference call. This stock is beat up severely, all of the negative has been factored in, and the shorts have moved this pig down to at or near rock bottom. yes I have averaged down, I've bought at two levels. I don't believe in charts or TA for anything longer the then the time frame between news and news happens all the.
If for some reason CHKP continues its free-fall I'd be forced to hold tight and turn this into a much longer then expected hold as long as the earnings picture remains stable. Once it made it's way from whatever bottom it found (earnings stability always a factor) I'd buy just as many shares as a could using the total value that I'm in at, and wait for a comfortable time to sell.
Maybe you can answer this question for me with your chart voodoo: What exactly do you look for to find out the amount of shares that are in a sold short position and eventualy have to be covered? If you need a subscription tell me through who and how much it is. In the interim could you tell me the answer to this question as it relates to CHKP?
Subj: Still holding this POS? By: fiberonthebrain Date: 04/27/02 01:38 pm
Sure the P/E is 17, but the growth rate is only 20%. There are better stocks. Sell now! ----------------------------------------------- The earnings growth rate is ONLY 20%. By the way -fiber sucks; coaxial cable can handle evrything.