I wouldn't say that is a non-factor. The percent short is now about 28% of float. That's getting close to where one might be able to say it is just retail (dumb) shorts and where a squeeze is at least in the realm of possibilities.
The short covering has taken place as the stock price has dropped 10 points. Not sure if I have ever seen that happen to a stock before. The shorts couldn't have drawn it up any sweeter for their pockets. Institutions sold while they covered. This is not all that good news IMO.
And the stock decreased 0.14 in that time period. Assuming no additional shorting during this time period, about 10-11% of the volume during this time was covering short positions. So let's also assume the shorts finally cover all positions at some point, then 10-11% of the buying volume is done. Is that a good sign or a bad sign? I am not sure what to make of it.
From a fundamental standpoint this seems like great news. The "smart money" is covering and once all short positions are covered do they then start a buying spree and start sending this stock up? The earnings report and the price action afterwards will be interesting. Anybody have any thoughts on what is going on? Anybody else have any theories or analysis of this information?
We don't have any indication of Institutional selling since the end of the year. I would think that there was some more selling out (perhaps after the CEO announcement). Not positive news in my opinion. The shorts have no room downward for large profit (that good as far as a bottom possibility for the stock price goes). Even more possibility for a big move after earnings if the numbers and guidance look attractive (Institutional buying back in). I would suspect some of a move would be in beginning of April as it would reflect 2nd quarter portfolio numbers for the hedge funds and Institutional banks etc. At these prices, shorts can cover at their leisure as the selling seems to continue?