The latest short interest data released today (12/10) has days to cover unchanged at 22 days. There were 1 million shares bought back, as the number of shares sold short dropped to below 23 million. Those poor suckers that bought CERN to close some of their short positions took it in the shorts. At the beginning of the period, the stock was at 56.78, and proceeded to climb through the period, closing at 58.24. NOT the price that anyone would want to be buying to close out a short position.
The latest short interest in Cerner was released this afternoon by NASDAQ. It is the highest its been in at least a year, and is over 22 days of trading volume (i.e. it would take 22 days of average trading volume in the stock for all fo the shares sold short to be bought back). Short interest has always been inordinately high for this stock, and short sellers have had serious difficulties the past 10 years making money selling the stock short as it seems to be always going up. (Hope springs eternal). It's gone up 11X in the past 10 years. A high short interest tends to create 'panic buying' when the stock makes an upward move, causing short sellers to buy into a rising market in order to staunch losses or meet margin calls, also known as the 'short squeeze'. As the stock price moves higher, the buying accelerates, creating a 'buying frenzy' that feeds on itself. Secondarily, a high short interest also acts to limit price drops as short sellers buy stock in order to capitalize on any price drops. Short interest represents a 'pent-up' demand for the stock that will need to be satisfied at some time in the future as short sellers have to buy the stock to return the shares they have borrowed to sell short.
Short interest has always been very high on this stock for at least the past 10+ years. And over those 10+ years, the stock is up 24X. 24X!!!! And shorts have lost their shirts during the whole journey. What we all should have learned by now is when someone is recommending it is time to go short, the only way to make money is to go long. Proven beyond a shadow of a doubt over the last 10+ years.
Shorting CERN must be like some false religion; it requires a lot of faith (when the facts and numbers say something totally different) and then it never delivers. Unless your goal is to lose all of your money, in which case things have always worked out well for you.
Yeah, right, braniac! MRGE was at 4.49 when your mouth blasted off without connecting with your brain, and now it is down to 2.85. Great pick dude! Next time I want to lose half of my money, I'll be sure to give you a ring.