That is amazing. Why are short sellers absolutely piling onto this stock? Are they going through accounting fraud or something?
I have never seen this before in what is seemingly a normal coal company and was once a favorite. Over 11 million shares are short now. These guys own the stock movement too. Forget about a huge short squeeze, unless an upgrade comes out or they produce blow-out earnings.
Travelzoo has had high short interest for over a year and the stock never gained momentum back. Each pop was thwarted by shorts attacking it again and again. It's no different than NFLX, GMCR, and the like. Once shorts get their claws in on a low volume stock, it takes a lot of money going long to break their grip.
Longs should be very concerned about this. What do the shorts see that longs don't? Over 41% of the float is betting that this stock price is going down from here. It is already trading 4 dollars below book value now. They must be going out of business or something or have internal acounting problems that someone knows about.
Short interest being up means eventually all these shorts will have to buy. Short squeeze will occur on any major coal plays. Stocks like this with high beta perform just like SIRI. Sure they bring it down. But they eventually have to buy to cover and then it soars. We've seen the downward cycle. The winter is upon us, shortages of coal everywhere. What does that tell you? Forget the GS downgrade of the sector. They serve their own interests. Bet you we will be in the double digits within the next three months.
By the way, why don't other coal stocks have such a high short interest? PCX, of all companies with questionable earnings, doesn't even have half that amount of short interest. It also outperformed JRCC on Friday.
You need to ask yourself, "why is this company being attacked?" Obviously, there is something going on that the public doesn't know about.
Every one of the stocks on this list have been total losers. Just look at their charts. James River will now be in the top ten on this list and the ONLY coal stock on it. Makes you wonder...
They don't "have to" cover....ever. Ever heard of naked shorting? They can just keep adding to their positions. Look at GMCR, TSLA, OPEN, JVA, SODA, etc. They have had high short interest for a LONG time. Their charts tell the story, too. When shorts infect a stock, it is usually doomed.