Go to Jeff Salisbury LWGate Home Page.From: "Kelly Short" <kelly.short@fw.us.neoris.com>
Subject: RE: [CANSLIM] Outstanding Shares Sold Short
Date: Fri, 29 Aug 2003 09:48:28 -0500
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Good explanation of the short-squeeze effect on NFLX from Motley Fool =
today:
=20
What's Lifting Netflix?
On no news, shares of online DVD-rental operation Netflix (Nasdaq: NFLX) =
<http://quote.fool.com/uberdata.asp?symbols=3DNFLX> have soared 33% =
from $25 to $33 in the last eight trading days, hitting new highs along =
the way. Volume jumped to more than double the average some days, with 2 =
million shares trading hands.
The stock market has been weak over the same period, so why the ascent?
First, a strange rumor was floated that Wal-Mart (NYSE: WMT) =
<http://quote.fool.com/uberdata.asp?symbols=3DWMT> would make a buyout =
offer for Netflix, a notion so unlikely that investors should not =
seriously consider it. Netflix wants to remain independent and Wal-Mart =
has little cause to purchase it -- despite Netflix's 1.1 million =
subscribers outgunning Wal-Mart's fledgling competing service.
Just the same, the crazy rumor may have helped the stock start to move, =
but the ultimate rocket fuel pushing it upward is probably short =
covering -- a bona fide "short squeeze." As of August 8, nearly 8.3 =
million shares of Netflix were sold short =
<http://www.fool.com/FoolFAQ/FoolFAQ0033.htm?source=3DEDNWFT> (meaning =
borrowed from a broker and sold in hopes of a price decline). This means =
that 50% of the company's available shares were sold by short sellers =
and need to be repurchased, creating eventual buying pressure.
As of July, the short interest on Netflix was even higher, so already =
some buying from capitulating short sellers has helped the stock move =
upward. Plenty of potential buying pressure remains. The amount of short =
interest on the stock equates to 12.12 days of Netflix's average daily =
trading volume -- high enough to place it seventh on the market's list =
of most heavily shorted stocks as a ratio to average daily volume =
<http://viwes.com/invest/shorts/top20/latest/rate1.html> .
This means that should good news arrive, or if momentum keeps pressing =
the stock to new highs, many more short sellers might start closing =
their positions and the stock could see many more days of =
higher-than-average volume and buying pressure.=20
Peer TiVo (Nasdaq: TIVO) =
<http://quote.fool.com/uberdata.asp?symbols=3DTIVO> has 34% of its =
float (available shares) sold short, but that equates to just five days =
of average trading volume.
- -----Original Message-----
From: Krueger, Kevin [mailto:Kevin.Krueger@cardinal.com]
Sent: Friday, August 29, 2003 9:38 AM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] Outstanding Shares Sold Short
Here is an except from a little section called "Floor Talk" on =
Briefing.com regarding short squeezes in action.
=20
" . . . Spoke to one trader this morning who was giddy over all the =
money he's made this year, but couldn't tear himself away from the =
market before participating in just a couple more short-squeezes. As =
we've been noting all week, when the big boys are away daytraders have =
free reign in the marketplace. This is why we have seen the action =
dominated by small-caps and mid-cap momentum names with high =
short-interest. Today's mid-cap short-squeeze stocks include (UOPX =
+4.76, MIK +3.90, CELL +2.75, APPX +2.25, GTRC +1.72, NTES +1.33)... "
=20
Happy Holidays,
Kevin
- -----Original Message-----
From: D B [mailto:marketshark7@yahoo.com]
Sent: Friday, August 29, 2003 8:22 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Outstanding Shares Sold Short
Hi All,
=20
Good point on short interest. You can get the data in Yahoo! Fn by =
looking at the company profiles. I'm not sure where you can go to =
compare all stocks on this variable.
=20
I don't think short interest has too much effect in CANLSIM candidates. =
I know recently CNTE has moved higher with a large % of shares held =
short, I would bet that in most cases a sqeeze will occur. This happened =
to KKD a couple of years ago.
=20
Dan
Tomas <tomas986@yahoo.com> wrote:
Good question Kelly. I have the same question in
mind.
Anyone have any inputs?
tomas
- --- Kelly Short wrote:
> All,
>=20
> I read an article today regarding the number of
> outstanding shares sold short for NetFlix (NFLX).
> Though it's not really a CANSLIM candidate, I think
> the concept should be an important one to CANSLIM
> investors.... that is, how does one check the number
> of shares sold short on a particular stock, can you
> compare this number to other similar stocks, and
> does anyone use this information in their due
> diligence when selecting a CANSLIM purchase?
>=20
> Article:
>
http://www.fool.co.uk/stockideas/2003/si030826.htm?logvisit=3Dy&source=3D=
estmarhln001999&npu=3Dy
>=20
> Thanks,
>=20
> Kelly
>=20
> -
> -To subscribe/unsubscribe, email
> "majordomo@xmission.com"
> -In the email body, write "subscribe canslim" or
> -"unsubscribe canslim". Do not use quotes in your
email.
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<BODY>
<DIV><SPAN class=3D067394714-29082003><FONT face=3DArial color=3D#0000ff =
size=3D2>Good=20
explanation of the short-squeeze effect on NFLX from Motley Fool=20
today:</FONT></SPAN></DIV>
<DIV><SPAN class=3D067394714-29082003><FONT face=3DArial color=3D#0000ff =
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D067394714-29082003>
<H3><A name=3DWhat>What</A>'s Lifting Netflix?</H3>
<P>On no news, shares of online DVD-rental=20
operation <STRONG>Netflix</STRONG> <A=20
onclick=3D"openWindow('http://quote.fool.com/uberdata.asp?symbols=3DNFLX'=
, 'quotebox', 640, 460); return false;"=20
href=3D"http://quote.fool.com/uberdata.asp?symbols=3DNFLX">(Nasdaq: =
NFLX)</A> have=20
soared 33% from $25 to $33 in the last eight trading days, hitting =
new=20
highs along the way. Volume jumped to more than double the average some =
days,=20
with 2 million shares trading hands.</P>
<P>The stock market has been weak over the same period, so =
why the=20
ascent?</P>
<P>First, a strange rumor was floated that <STRONG>Wal-Mart</STRONG> <A=20
onclick=3D"openWindow('http://quote.fool.com/uberdata.asp?symbols=3DWMT',=
'quotebox', 640, 460); return false;"=20
href=3D"http://quote.fool.com/uberdata.asp?symbols=3DWMT">(NYSE: =
WMT)</A> would make=20
a buyout offer for Netflix, a notion so unlikely =
that investors=20
should not seriously consider it. Netflix wants to remain =
independent=20
and Wal-Mart has little cause to purchase=20
it -- despite Netflix's 1.1 million=20
subscribers outgunning Wal-Mart's fledgling competing service.</P>
<P>Just the same, the crazy rumor may have helped the stock start =
to move,=20
but the ultimate rocket fuel pushing it upward is probably =
short=20
covering -- a bona fide "short squeeze." As of August 8, nearly 8.3 =
million=20
shares of Netflix were <A=20
href=3D"http://www.fool.com/FoolFAQ/FoolFAQ0033.htm?source=3DEDNWFT">sold=
short</A>=20
(meaning borrowed from a broker and sold in hopes of a price decline). =
This=20
means that 50% of the company's available shares were sold by =
short=20
sellers and need to be repurchased, creating eventual buying =
pressure.</P>
<P>As of July, the short interest on =
Netflix was even higher, so=20
already some buying from capitulating short sellers has helped the stock =
move=20
upward. Plenty of potential buying pressure remains. The amount of =
short=20
interest on the stock equates to 12.12 days of Netflix's average =
daily=20
trading volume -- high enough to place it seventh on the =
market's list=20
of most heavily shorted stocks as a <A=20
href=3D"http://viwes.com/invest/shorts/top20/latest/rate1.html"=20
target=3D_blank>ratio to average daily volume</A>.</P>
<P>This means that should good news arrive, or if momentum keeps =
pressing=20
the stock to new highs, many more short =
sellers might start=20
closing their positions and the stock could see many more =
days of=20
higher-than-average volume and buying pressure. </P>
<P>Peer <STRONG>TiVo</STRONG> <A=20
onclick=3D"openWindow('http://quote.fool.com/uberdata.asp?symbols=3DTIVO'=
, 'quotebox', 640, 460); return false;"=20
href=3D"http://quote.fool.com/uberdata.asp?symbols=3DTIVO">(Nasdaq: =
TIVO)</A> has=20
34% of its float (available shares) sold short, but that equates to =
just five days of average trading volume.</P></SPAN></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
size=3D2>-----Original Message-----<BR><B>From:</B> Krueger, Kevin=20
[mailto:Kevin.Krueger@cardinal.com]<BR><B>Sent:</B> Friday, August 29, =
2003=20
9:38 AM<BR><B>To:</B> canslim@lists.xmission.com<BR><B>Subject:</B> =
RE:=20
[CANSLIM] Outstanding Shares Sold Short<BR><BR></FONT></DIV>
<DIV><SPAN class=3D968483514-29082003><FONT face=3DArial =
color=3D#0000ff size=3D2>Here=20
is an except from a little section called "Floor Talk" on Briefing.com =
regarding short squeezes in action.</FONT></SPAN></DIV>
<DIV><SPAN class=3D968483514-29082003><FONT face=3DArial =
color=3D#0000ff=20
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D968483514-29082003><FONT face=3DArial =
color=3D#0000ff size=3D2>" .=20
. .<!--StartFragment --><FONT face=3D"Times New Roman" color=3D#000000 =
size=3D3>=20
Spoke to one trader this morning who was giddy over all the money he's =
made=20
this year, but couldn't tear himself away from the market before =
participating=20
in just a couple more short-squeezes. As we've been noting all week, =
when the=20
big boys are away daytraders have free reign in the marketplace. This =
is why=20
we have seen the action dominated by small-caps and mid-cap momentum =
names=20
with high short-interest. Today's mid-cap short-squeeze stocks include =
(UOPX=20
+4.76, MIK +3.90, CELL +2.75, APPX +2.25, GTRC +1.72, NTES +1.33)...=20
"</FONT></FONT></SPAN></DIV>
<DIV><SPAN class=3D968483514-29082003></SPAN> </DIV>
<DIV><SPAN class=3D968483514-29082003><FONT face=3DArial =
color=3D#0000ff=20
size=3D2>Happy Holidays,</FONT></SPAN></DIV>
<DIV><SPAN class=3D968483514-29082003><FONT face=3DArial =
color=3D#0000ff=20
size=3D2>Kevin</FONT></SPAN></DIV>
<BLOCKQUOTE>
<DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
size=3D2>-----Original Message-----<BR><B>From:</B> D B=20
[mailto:marketshark7@yahoo.com]<BR><B>Sent:</B> Friday, August 29, =
2003 8:22=20
AM<BR><B>To:</B> canslim@lists.xmission.com<BR><B>Subject:</B> Re: =
[CANSLIM]=20
Outstanding Shares Sold Short<BR><BR></FONT></DIV>
<DIV>Hi All,</DIV>
<DIV> </DIV>
<DIV>Good point on short interest. You can get the data in Yahoo! Fn =
by=20
looking at the company profiles. I'm not sure where you can go to =
compare=20
all stocks on this variable.</DIV>
<DIV> </DIV>
<DIV>I don't think short interest has too much effect in CANLSIM =
candidates.=20
I know recently CNTE has moved higher with a large % of shares held =
short, I=20
would bet that in most cases a sqeeze will occur. This happened to =
KKD a=20
couple of years ago.</DIV>
<DIV> </DIV>
<DIV>Dan<BR><BR><B><I>Tomas <tomas986@yahoo.com></I></B> =
wrote:</DIV>
<BLOCKQUOTE class=3Dreplbq=20
style=3D"PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #1010ff =
2px solid">Good=20
question Kelly. I have the same question in<BR>mind.<BR><BR>Anyone =
have=20
any inputs?<BR><BR>tomas<BR><BR>--- Kelly Short=20
<KELLY.SHORT@FW.US.NEORIS.COM>wrote:<BR>> All,<BR>> <BR>> =
I read=20
an article today regarding the number of<BR>> outstanding =
shares sold=20
short for NetFlix (NFLX).<BR>> Though it's not really a CANSLIM =
candidate, I think<BR>> the concept should be an important one =
to=20
CANSLIM<BR>> investors.... that is, how does one check the=20
number<BR>> of shares sold short on a particular stock, can =
you<BR>>=20
compare this number to other similar stocks, and<BR>> does =
anyone use=20
this information in their due<BR>> diligence when selecting a =
CANSLIM=20
purchase?<BR>> <BR>>=20
=
Article:<BR>><BR>http://www.fool.co.uk/stockideas/2003/si030826.htm?lo=
gvisit=3Dy&source=3Destmarhln001999&npu=3Dy<BR>>=20
<BR>> Thanks,<BR>> <BR>> Kelly<BR>> <BR>> -<BR>> =
- -To=20
subscribe/unsubscribe, email<BR>> =
"majordomo@xmission.com"<BR>> -In=20
the email body, write "subscribe canslim" or<BR>> -"unsubscribe =
canslim". Do not use quotes in=20
your<BR>email.<BR><BR><BR>__________________________________<BR>Do =
you=20
Yahoo!?<BR>Yahoo! SiteBuilder - Free, easy-to-use web site design=20
software<BR>http://sitebuilder.yahoo.com<BR><BR>-<BR>-To=20
subscribe/unsubscribe, email "majordomo@xmission.com"<BR>-In the =
email=20
body, write "subscribe canslim" or<BR>-"unsubscribe canslim". Do =
not use=20
quotes in your email.</BLOCKQUOTE>
<P>
<HR SIZE=3D1>
Do you Yahoo!?<BR><A=20
=
href=3D"http://us.rd.yahoo.com/evt=3D10469/*http://sitebuilder.yahoo.com"=
>Yahoo!=20
SiteBuilder</A> - Free, easy-to-use web site design=20
software</BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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Next Article (by Subject): RE: [CANSLIM] Stock Screening with sales data "Harold Josephson"
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