Diamond Foods: Shorts Cheer Its Demise
The shorts are cashing in on Diamond Foods.
Shares in Diamond Foods may be getting crushed like walnuts, but it looks like there may be a fair number of folks out there who feeling plenty pleased.
Short interest in Diamond was a hefty 10.5 million shares as of January 13, when the stock was trading nearly $30 (It fell to $20 in after-hours trading on Wednesday). That’s a chunky 51% of the float on the stock, which clocks in just north of 21 million shares.
That’s actually down from its peak of 12 million shares of short interest in mid November
No Brainer buy here folks as shorts will start to cover to lock in their hefty gains and bottom fishers jump in.
Watch and learn how to trade this puppy for $$$$$$$$$
I didn't even follow this company before I learned last night that it was halted, though I had heard of it recently...a few minutes of research whilst it was halted and then the 45% whipping it took in after hours was a very EASY decision to buy.
shorts already covered tonight. i'm not sure why nobody sees that. 8 million shares traded. who do you think was selling and who do you think was buying? who would buy 8 million shares at $21? shorts covering their positions all bought back at the sake of all the mutual funds who dumped their shares to get out and cut losses. at 4x the average daily volume and more than half of what was held short, how does this not make sense to you?
You don't know that.
And if the expenses were just misallocated between the two years in question then the net result of total earnings over 2 years will not change.
What is the price of the stock worth then?
Are you telling me that the auditors don't know how to count bags of potato chips?