The formula is based on the average daily volume over a certain time period, I think. Market Index says the average daily volume over the last 4 weeks is 1,022,358 shares, so with 7.7 million shorts outstanding, and assuming 1m shares were available every day and the shorts bought every one of those shares, it would take them about 7.7 days to cover. Not sure how 8.25 days was calculated but it was done using a similar method.
Of course, we all know HFT is just trading back and forth with itself all day every day, and recently a lot of the daily volume has been from short selling, so there are not even close to 1m shares actually changing hands on any given day.
In short (no pun intended), the 8.25 days to cover thing is a totally meaningless metric.
ASM Price at posting:
$2.01 Sentiment: Hold Disclosure: Held
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