20% of float is short, which will be exacerbated by the buy back announced on the call. Company announces guidance in line with (reduced) expectations. New service coming on-line and not included in guidance.
guys. i am long on tndm but still a newbie investor when it comes to the options. can someone explain what this poster means when he says a short squeeze is coming? what causes it? what does it foretell? any help would be appreciated thanks.
all i know is that the price didn't reflect what this stock was riding at a couple of months ago, and the explanation for the bad ride down was pretty weak.
Mown, I would recommend Investopedia.com as a resource while you're learning. Type in any term and it will give you a definition and explanation. Then go through all the fundamental terms on your stock summary page and learn them. Also, read their general explanation articles; they're very helpful for novices.
You've picked a good time to begin investing, or trading. And you need to know the difference.
(p.s., shorting or short squeezes are not directly related to option trading.)
Shorting means borrowing shares to sell. One makes money by selling high and replacing the shares at a lower price. Someone who does this expects the price to drop. To pocket the profit someone who is short must replace the borrowed shares by purchasing them back.
A short squeeze is when people who are short run en mass to cover their short positions, meaning they are buying shares to get out of their position. A short squeeze is good for longs, it means upward pressure on the price. The way TNDM traded today puts a lot of pressure on shorts to cover their positions, hence the talking about an impending short squeeze. With 20% of float short out there, that means that there could be a pretty intense short squeeze.
I'd be very nervous if I was short this stock as it seems to be gaining upward momentum.