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+--- Thread: Latest Short Interest (/showthread.php?tid=4868)
Latest Short Interest - pwalk - 10-10-2013
Short interest is now at 11.1 million shares, up from 9.2 million shares. With all the good news that has come out, including announcement that revenue will exceed prior guidence for the latest quarter, I am very surprised short interest increased again. Any thoughts?
RE: Latest Short Interest - pwalk - 10-10-2013
[quote='pwalk' pid='29728' dateline='1381364439']
Short interest is now at 11.1 million shares, up from 9.2 million shares. With all the good news that has come out, including announcement that revenue will exceed prior guidence for the latest quarter, I am very surprised short interest increased again. Any thoughts?
OK, well here is my concern. I have known a few short sellers (knew Polar Fund founder and owner when he was just starting out.) As a general rule, they are very sharp individuals. So I have respect for them as a group. And when I see short selling increasing month after month, in the face of nothing but good news, it gives me concern. I am long and strong NQ, still own a majority of my stock that I acquired in the single digits. Looking forward to next earnings announcement, feel that the stock can reach $50 a share or higher if company continues to execute as they have in the past year. So I am very bullish on NQ.
I just wonder what I am missing, if anything, that would cause a roughly 40% short interest ratio......
RE: Latest Short Interest - admin - 10-10-2013
Not all shorts are necessarily sharp, pwalk. They were as short in this when it was in the single digits, they're sitting on some serious losses. There was a short report out a couple of months ago, discussed here, and it was basically crap
RE: Latest Short Interest - pwalk - 10-11-2013
thanks admin. Guess my thinking is clouded by the shorts I knew. Both guys were incredible at finding companies before most others that were due for a major fall. Both went on to run hedge funds with serious amounts of money. I am sure a big part of the shorts thinking is that this is another Chinese company with questionable accounting. My fears of that were basically dismissed when Khan joined the company.
That being said, will continue to hold my NQ, as all signs that I can access and review point to continuned strength for the company and the stock!
RE: Latest Short Interest - tradestar2012 - 10-11-2013
The short thesis has been lacking. Short investors are no smarter than long investors. Look at Bill Ackman and his bet on HLF? Look at how most hedgefunds have underperformed the broader market this year. If there is a credible short thesis, you would not see Matt, KB Teo and Omar latch onto this company in the last 12-18 months. These guys are all intimately familiar with NQ mobile. Matt from a research/investor perspective. KB was likely involved in all the private side IB activities for NQ. Omar an industry veteran. Short of outright fraud and a complete breakdown of PWC's ability to audit NQ's financials, I'm hard-pressed to believe there are any major skeletons hiding in the closet. Shorts can be wrong. Look at AVG for example. Similar industry. Huge short interest in the beginning of the year. Shorts have been slowly covering all year.
RE: Latest Short Interest - doublebagger448 - 10-11-2013
Given the trading liquidity in NQ has massively improved, the days to cover the short position has actually declined. There are several technical funds that are shorting all of the top gainers in 2013 that do not have high days to cover. They think if/when the market corrects, that stocks that have the largest gains will see holders want to lock-in profit and sell first. Silly reasoning and has nothing to do with NQ's fundamentals, but this is a large driver of the increase in short interest.
RE: Latest Short Interest - admin - 10-11-2013
'doublebagger448' pid='29772' datel Wrote:Given the trading liquidity in NQ has massively improved, the days to cover the short position has actually declined. There are several technical funds that are shorting all of the top gainers in 2013 that do not have high days to cover. They think if/when the market corrects, that stocks that have the largest gains will see holders want to lock-in profit and sell first. Silly reasoning and has nothing to do with NQ's fundamentals, but this is a large driver of the increase in short interest.
Thanks for that, it makes sense.