The latest short interest report came out last night, and it appears that the jump in MLNK short selling may be leveling off. There were 7,320,933 MLNK shares sold short as of 6/30/2014. This compares to the 7,361,924 shares short as of the last report of 6/13/2014. As I've stated several times before, I believe that the large increase in short interest was due to the convertible note issue. MLNK short interest was reported at 590,118 on March 14, and popped up to 3,620,999 just 2 weeks later (after the convert offering). 2 weeks after that report, short interest increased to 5,135,414 shares. Here's a list for the year to date:
Remember that there are less than 52M shares of MLNK outstanding, so the effect of 7.3M shares sold short is equivalent to a 14% dilution. Not to mention that MLNK trading volume is light enough that an increase in short selling of this amount likely put a great deal of pressure on the share price. Hopefully, this trend will now be reversed.
nice thoughts but not as certain as you. this shows me that the street still doesn't have much confidence in this company & its stock and its future success. however, hope I'm wrong - been holding this puppy for a very long time