Short position was reduced a little as of 12/31/13
breaking 8 will trigger a major squeeze. The smart ones will not be stubborn and will cover before they are forced to. Any positive news or analyst upgrade could put MM on fire. Shorts are betting on worse case scenario and there is a high possibility that MM will beat expectations, and when that happens, a double is not out of question.
As you know I am long, but I don't think the shorts are making a bad play. If MM doesn't beat the hell out earnings they are going to hack this stock back down to $6.00. A big earnings beat is coming at some point, but I just don't know if its this quarter or four quarters from now. If we agreed there is only 20% (just throwing a number out there its certainly higher than 10% and lower than 50%) chance or less that MM beats earnings by a lot then better against MM prior to earnings isn't a terrible play. I won't be shorting or unloading my position because if they do well this quarter MM is in the teens instantly. If they do par or have a respectably bad quarter I think it only goes back to low $6.
At 7% of portfolio size, a selloff down to $6 from here is a roughly 1.4% overall portfolio drawdown on the MM position. That's pretty reasonable portfolio risk management. It's a far better use of one's time and energy to do such calculations and adjust position sizes as necessary than to make predictions based on nothing more than hope or company press releases, call names on message boards, etc. When all is said and done, your equity curve either slopes up over the long term, or it doesn't, and you've spent your energy wisely on influencing its shape, or you haven't.
There's no verifiable information. But if MM is 'Ready to Redefine Advertising' as the new SVP writes, then there is no top to this stock, and talk of a 'mere' double is shortsighted. Of course, that's one mother of an 'if'.