Wolves excellent post!
Leeman, possibly after8 days it makes it more difficult for shorters to cover or close their positions, note this calc is based on 180 mill outstanding shorts divide by ave vol 22m gives 8 days as a rough estimate
Please see some info below that may describe, what we may see in near future, bring on the short squeeze!
Days to Cover
Days to cover is the reason to calculate the short interest ratio. This will tell investors how long it will take the shorts (people who are betting that the stock will go down) to close their positions and buy the stock. (Remember that when you short a stock, you sell it first, and then buy it. If you buy it at a lower price you have made money. If you buy it at a higher price you have lost money.) For example, say a company at a short interest of 4 million shares and an average volume of 2 million shares, the equation would read:
4 million / 2 million = 2
In this equation the short interest ratio, also known as days to cover, would equal 2. This means during average volume, it would take shorts two days to cover their trade.
Short Squeeze
A short squeeze is created when there are a lot of investors who are shorting the stock who suddenly need to buy it back. Many investors will use the short interest ratio to identify when a short squeeze might take place. They would then buy the stock hoping for a quick rise in price. For instance, say a stock was heavily shorted and had a number such as 10 days to cover because a lot of investors thought a company was going to miss earnings. If the company beat expectations, that would send the shorts scrambling to get out of the trade and buy the stock back at a frenzy. If you were long (meaning you bought the stock and wish it to rise) you might suddenly have a nice surprise as all of the shorts are "squeezed" out of their position. In this manner, the short interest ratio can help identify a short squeeze.
Read more: Definition of a Short Interest Ratio | eHow.com http://www.ehow.com/about_6601732_definition-short-interest-ratio.html#ixzz2MggwaHga
aussiebulls confirmed buy, page-11
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Mkt cap ! $7.206B | |||
| Open | High | Low | Value | Volume |
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| No. | Vol. | Price($) |
|---|---|---|
| 1 | 16763 | $7.70 |
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| Price($) | Vol. | No. |
|---|---|---|
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