At the end of July, short interest was 121MM shares. The month before it was 93MM. It grew in July by 30MM. Since AMD went south markedly during August, it's fair to assume short interest went up perhaps another 30MM shares to 150MM now. That's almost always a signal for frequent traders to manipulate it upwards to try to set up a short covering cascade if possible - a run upward it possible. If they can get a run started and manage to get 70MM shorts to cover, AMD can shoot up by over 50c to 75c, which to FTers is a giant killing.
This has nothing to do with AMD as a company. Amd is still a dog. That's NOT at all the point. #$%$ on WS don't care. They can see a killing coming. That's all. It can be kickstarted with two or three fake upgrades and that's all the FTers need to pocket big chump change.
So, don't be shocked if they invoke this old old and proven trick to skin some shorts. Longs will take the tick all wrong and believe that Amd is finally "appreciated as Amd should be" That would be a big mistake, but it will happen nonetheless. It's part of the FT game to such in longs and bounce shorts. Again, it has nothing to do with Amd as a company. It's just a common casino move. Any small spark can ignite the fuse.
Market is getting ready for a bad quarterly report. I think this coming week we will end up at 3.15 and after that the terrible twos again. I think AMD has simply run out of time. Monetizing everything they own is a short term shot of juice . When the numbers come in and its see the gaming chips didn't do much and one time property sales bought in the money the stock will tank badly.
Short int just 2 days ago, and posted right here on the AMD data page, (http://finance.yahoo.com/q/ks?s=AMD+Key+Statistics) was 121MM short shares as of July 31. Now, just days later (Sept 1) the same page shows Aug 15 was 109MM shorts. So, your more current (just posted!!!) number is correct.
But I have much worse news for you now. Much worse. The shorts WERE rising, month after month, from 93MM to 121, and since AMD was diving during this time, I reasonably assumed that shorts were still rising, as I reported.
But, since shorts have ACTUALLY FALLEN from 121MM to 109MM, that can only mean one thing - 12MM shorts have covered (PURCHASED) 12MM shares while Amd continued to dive. Had those 12MM shorts NOT COVERED, AMD would be even LOWER than $3.20!!!!!!!!!!!!!!!
You better thank those shorts for protecting your butt! Amd might be in the $2s now. Things are worse than you think. Longs are bailing. That's the only answer.
The risk for short is not only that MM's can force a lucrative short squeeze, but there MAY, again MAY be several other risks.
In 2012 GS believed there is a 15-30% chance of a buyout of AMD, this was when it was not publicly known AMD will supply the chips for the XB1 and PS4.
On May 16th 2013 GS downgraded AMD and one of the reasons was because AMD has become less attractive for a buyout.
"The analyst added that AMD could potentially be acquired by a hardware company that wants to replicate the success Apple and Samsung have had with their integrated approaches to mobile products. However, Covello believes AMD’s recent rally makes this scenario less likely...
...The stock would be more attractive if AMD’s prospects in its core PC and server processor business were more favorable, Covello said, and if its valuation was more attractive to potential buyers."
I seriously suspect GS knows some companies want to buyout AMD. It's no secret that GS is often consulted for M&A and that the "Chinese Wall" is not sound proof. In other words, if no short squeeze commences and the price is at the level GS want, I won't be surprised someone will accumulate for a possible buyout. And that possible accumulation will obviously trigger a short squeeze.
if someone is interested in buying out amd and is accumulating shares, the a sec form 3 has to be filed within 10 days of accumulating 10% of amd shares thus tipping off the mkt. Besides, I would think the mm's would notice the accumulation even before it got to 10%.