...We Welcome You To The Resverlogix HUB withIn The AGORACOM COMMUNITY!

Free
Message: Re: short interest up 60% from 230,476 to 369,578/OTC/market

There was major spike in volume over the reported period ending April 14th, averging 702,000 shares per day.  This spike even moved up the 50-day average volume by quite a bit to 243,730 share per day.

Days to cover is just a mathematical expression of how many days worth of volume it would take to unwind the short.  If the 'Days to Cover' is 45, you had better be right about your short or you will have a great deal of difficulty unwinding your short position in such a thinly traded stock (relative to the size of your short) without causing a short squeeze.

Keep in mind that much of today's volume in many stocks are not what I call "real" trades, so the Days to Cover is a bit misleading.  If 50% of trades are BS trades then it will take you many more days than the Days to Cover figure in order to completely get out.

Share
New Message
Please login to post a reply