On 2/28, the short interest was 216mil shares and trading at $20.69.
On 5/15, the short interest was 224mil shares and INTC was trading HIGHER by 17% at $24.20.
INTC is trading 17% higher with a larger short interest.
5/15/2013 224,949,744 closing price $24.20
4/30/2013 233,212,213 closing price $23.73
4/15/2013 235,467,126 closing price $21.18
3/28/2013 238,762,872 closing price $21.64
3/15/2013 233,896,426 closing price $21.18
2/28/2013 216,006,917 closing price $20.69
So the short position will take about 5 days to cover at average volume? Though the real issue here for the short sellers is how liquid is intel's float. My guess is that only 20% of the float is generally in play at any given time, about 1 billion shares. The rest (80%) being held by long and dividend seeking investors. Not to mention intels own buy back. So lately the average volume has been dropping dramatically. My guess is that most of the short position is at about $22, margin calls wont start come into play unless intel rises above $25. Irrespective, effectively near 20% of the active float my guess is short.
Short interest started climbing by 1mil shares per day or about 10mil shares each half month reporting period. It started climbing over a year ago but I cannot find more than 1 year history. I think the average price of shorts is a little higher than $22 but that would be just my impression.
Intel contracts with a company to do their buy backs. Read about the Lehman Bros lawsuit against Intel to see an example of their instructions. Intel contract buys based on average volume and price over a period of time.
Options are likely an easy exit. There are a million combinations. The excess short is about 150mil shares. The remaining shorts are probably part of the INVERSE ETF like SOXS, QLD, SDS, ...
Value investors? The funny thing is that conservative funds in their search for yield are one of the major sources of shares to loan for shorting.
It will be interesting to watch. I watched the shorts load up but I don't think there will be a squeeze. I WAS surprised at the small drop in shorts and the 17% increase in price.
The Wall Street Journal reports that short interest in Intel dropped (again) in the two week period ending May 15, 2013. Though short interest is still over 4% of float, a pattern is developing in declining short sales in Intel Corp.
If you look at the INTC SHORT INTEREST on nasdaqDOTcom, you can see the history. My point was the short interest is now just a little higher than in Feb when the share price was $20.69. Before "PC is dead" crew started out 3 years ago, the short interest in INTC was 50m shares. That was 50m shares when the outstanding float was 6.5bil shares. Now with 5bil shares, the short interest is 4x that much.
There are a couple more shorts to cover. When they realize that the IDC "PC is dead" numbers are made with tablet numbers comprised of anything with detachable keyboard, the light bulb will go on. MSFT SurfacePro is and IDC tablet.