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Early March Short Data ?3
11:34 25-Mar-15
Data on shorted float
for the first half of March has just been published. I see a few
interesting things:
MVIS shorts rose 11%, bringing shorted float from 8% up to 9% While the absolute numbers aren't so big, I find the direction pretty surprising. It's possible that most of the increase was in anticipation of earnings, which were scheduled before the more fundamentally important announcements. Perhaps because of prior experience, the slam publication by the StreetSweeper had pretty limited success in mitigating the situation for short sellers; the rebate rate dipped yesterday and the day before, to a temporary low just above 13%, but is now on the rise again. I note that shares were completely unavailable for borrowing yesterday for the first time in recent memory. Although share price is falling back moderately due, I think, to impatience, I continue to expect that a small short squeeze will ensue if there is a positive announcement while this situation persists.
Less surprising, given all the negative sentiment surrounding InvenSense, is the reversal in the short trend for INVN. Shorted float rose over 4%, after dropping steadily ever since the earnings debacle last October, which resulted in current pricing. One data point doesn't make a trend, and the rebate rate remains around 17%. Nonetheless, this may signal the beginning of a move out of the range trading that has been typical of both longs and shorts settling accounts.
Of no surprise at all, is the continued steady covering in OLED. Shorted float has fallen about 15% since the announcement of the new LG contract just a month and a half ago, and that is doubtless contributing to the recent appreciation in shares. Market dynamics like this are fundamental but typically temporary without earnings support.
MVIS shorts rose 11%, bringing shorted float from 8% up to 9% While the absolute numbers aren't so big, I find the direction pretty surprising. It's possible that most of the increase was in anticipation of earnings, which were scheduled before the more fundamentally important announcements. Perhaps because of prior experience, the slam publication by the StreetSweeper had pretty limited success in mitigating the situation for short sellers; the rebate rate dipped yesterday and the day before, to a temporary low just above 13%, but is now on the rise again. I note that shares were completely unavailable for borrowing yesterday for the first time in recent memory. Although share price is falling back moderately due, I think, to impatience, I continue to expect that a small short squeeze will ensue if there is a positive announcement while this situation persists.
Less surprising, given all the negative sentiment surrounding InvenSense, is the reversal in the short trend for INVN. Shorted float rose over 4%, after dropping steadily ever since the earnings debacle last October, which resulted in current pricing. One data point doesn't make a trend, and the rebate rate remains around 17%. Nonetheless, this may signal the beginning of a move out of the range trading that has been typical of both longs and shorts settling accounts.
Of no surprise at all, is the continued steady covering in OLED. Shorted float has fallen about 15% since the announcement of the new LG contract just a month and a half ago, and that is doubtless contributing to the recent appreciation in shares. Market dynamics like this are fundamental but typically temporary without earnings support.