10/15: 571,837 short. 60,700 avg volume. 9.41 days to cover.
09/30: 593,872 short. 72,549 avg volume. 8.19 days to cover.
09/13: 631,091 short. 27,084 avg volume. 23.3 days to cover.
08/30: 643,321 short. 39,888 avg volume. 16.13 days to cover.
Given price and volume activity since 10/15, I would suspect some more shorts have covered. Especially after the way the shorts were treated when CMG reported its earnings. In fact, I think a sympathy trade is in order with respect to PZZI as investors of CMG take some profits and look for the next CMG. In the fast casual pizza segment, PZZI is as much of a pure play as one can get that is publicly traded.
"Really? I think you are wrong. Explain how much they made, how much that had to risk to make a gain on their position?"
To begin, I never indicated that the shorts made any money. All I said is that in the last two weeks since the most available data of 10/15, volume and stock price activity suggests more have covered. In support is the trend in the short position. Since a peak at 643,321, short interest has been trending downward.
A previous post of mine on short interest indicated a spike in shares shorted once PZZI went over $7.00 per share and Q4 earnings drawing nearer. If you recall Q3 earnings, the shorts had their day. With that in mind, a few were most likely were thinking they would have their day when Q4 earnings were announced. That did not happen. Like Q3, PZZI filed another and more aggressive S3. Unlike Q3, the market took a liking to the new S3 as its use will no doubt fund the expansion of Company owned stores into the Houston market and incur little to no debt. In addition, Q4 numbers made clear that PZZI is on the way to putting in positive Q results going forward now that Pizza Inn has smoothed out and Pie Five is opening stores. Hence, the reason why shorts have been covering their position(s) is because they are being spooked to the sidelines. When you toss in CMG and the valuations and investor behavior being witnessed there, PZZI has the potential to spike in price that put simply, has the shorts shaking in their boots.
Fuel for the fire as these guys are forced to cover. They obviously must be sweating right now. A few more PR's with PZZI selling another 50 franchise units and we will rocket to $12 IMHO . PZZI is an outstanding real investment. Unlimited upside and ground floor opp rolling out game changing food concept in massive industry. New management team is executing impressively. Top execs all can make tens of millions if PZZI becomes next chipotle. Go get it guys