Short interest data 12/15 to 12/31:
Short interest: 17,643,369
Avg Daily Vol : 701,061
Days to Cover: 25.1525
Only a little over 100,000 shorts covered in the last two weeks of Dec. This explains MNI's rush below 1.00 as there was no buying at all to prop the price up. Expect the next report to show significant covering as new millionaires cash in, sucking up the value that MNI has so foolishly squandered.
If I am interpreting correctly -- and I admit I might be missing something -- when there are few shorts being covered, MNI drops like a rock. That was the case the last week of December, when MNI's 52-week low of 62 cents a share was established. If you have more info, leave in comments.
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2 comments:
So there are alot of shorts out that need to be covered... that means MNI will go back up when they are covered?
Yes, as we saw when trading resumed in 2009 there was an immediate spree of covering which drove the price up over a two or three day period. With no support, the stock has no where to go but down as you see happening right now.
This is a short term effect however, as over the past few months MNI's short interest has dropped from almost 50% of their entire float being short to a little over 22% going into mid Dec. This is kind of astounding when one considers that the price has dwindled into sub penny range and 1/4 of all holders think it is going lower.
Congrats to all that made the play. You're the geniuses going forward.
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