Looks like your short strategy has worked out up to now, but with the very high level of shorted shares and low trading volume, I would not recommend staying short at this point in time. That said I think the company is in a long term gradual decline. They will continue to lose on the top line and will have to lower their costs to stay profitable.
Looks like the volume has picked up today. Most likely some short covering has been triggered by margin calls and because of the recent upward trend. There was over a million shares short on Feb 29th. It will be interesting what the short position will be on March 31.
VRTV is like a penny stock from a volatility standpoint. Its early in the day, but the stock is up almost 5% with a little over 3,000 shares traded. Who are the buyers and sellers? Doesn't seem like anyone is interested in the company except for the couple of institutions that own a majority of the company. I bet they wish they had a way out. I watch the stock is because I was once an xpedx employee and I know how hard it is to make money in a distribution business.
The recent price run up is hard to explain. At first I thought it was due to short covering, but the low daily volume doesn't support that reasoning. Short interest is slightly over one million shares and daily volume is only about 25,000 shares, yet the stock price increases have been 2 or 3 percent a day. It just appears there are very few shares that individuals want to sell at the moment. If a true short squeeze comes into play, we will see significant volume increases and even larger daily price increases. If you think about it, there are about 20 days worth of trading to close out all the short positions. (That is based on 50,000 shares a day which is twice the current trading volume). Don't think the company is really doing that well, but the high short position should be a warning to not do any more shorting.
Bought 1,000 shares a couple of weeks ago. Made some money, but because the bid and ask prices were so far apart, I had to settle for a price that ate a significant amount of the profit. Learned this is not a day trade shock. Just not enough volume.
AMZM along with the other fast growth high P/E stocks are no longer feeling love. Amazon is becoming more and more a very efficient distribution company that requires large amount of capital to build out distribution centers and now is talking about brick and mortar stores. Unfortunately, no matter how efficient they become as a distribution company, their P/E ratio should only be about 15 times. What does this tell you about the future?