Volume is too low to be a short squeeze. There are lots of shorts on AWRE and some are getting out now no doubt. The market has been stronger this week than almost anyone anticipated. That's got to make a lot of shorts nervous. And the shorts are quiet on the message board today. They're too busy watching each tick, trying to decide when to cover.
Shares Short 4.05M Percent of Float 21.1% Shares Short (Prior Month) 4.19M Short Ratio 40.87 Daily Volume 99.0K You are right Yahoo reports 21% of the float is held by shorts. It is however only half of last months.
Short position for AWRE is VERY misleading. I understand 3.0 million shares short are "short against the box". Hence can be easily covered by closing the position. No buying necessary to cover, UNLESS, the shareholder wants to maintain his/her long position and then would buy in the open market to cover short...
Confusing but as I understand one of AWRE's original venture shareholder shorted against his/her long position (pretty smart) to lock in their gain.
Now, they have a capital tranaction when 1] they buy the shares to cover the short or 2] they close the position.
Just FYI, 22% short position is in reality about 5-7% or about 1.0 million shares. Still a sizeable number but not excessive and could be covered without a huge short squeeze.
At the end of the day, AWRE shares will rise or fall on the basis of their technology and revenue/earnings...... If you believe internet access will remain the domain of 56k dial-up modems vis-a-vis cable or DSL modems then sell (or short) AWRE.
I, as an opportunistic shareholder since 1998, beleive the future is bright and AWRE will survive. MZ and RM are bright guys. AWRE technology is being deployed (more so outside of the US) but the market will be BIG and AWRE has always said they thought they can achieve +40% market share worldwide.
IFX, ADI and Samsung are all world-class partners and when INTC launches their "DSL/Cable Modem on a Chip", every new computer, pda and eventually cell phone will have internet access and AWRE shareholders will make some cool cash.