FB great to see you back, UNIS on the Nasdaq tonight might have another run before we open
Wednesday, April 25, 2012
Updated!! Who Wears Short Shorts? $UNIS Unilife wears them
I'm not sure if shorting Unilife stock has become a badge of honor or "Jackass" style stunt these days. After seeing some downward movement in overall positions the last few months, the short interest exploded northward the past two weeks. In the prior period, Frontier Capital Managment purchased 963,000 and this could be part of the reason for the dramatic rise in short interest. Fund holdings have reached 18.1 M (original 16.4 million) shares held out of a possible 25 million total (excluding restricted and options). This leaves 7 million free shares to purchase. Currently there are 7.7 million shares short. This does not leave much for other funds to purchase so in order to keep an orderly market, shares have to be continually shorted. At some point these shares are going to have to be repurchased, which is why you often see some pullbacks in the stock after a seemingly important technical trigger being breached. The market resets itself to allow some covering to occur. However, with every passing quarter, more and more funds are taking positions in the stock leaving less and less wiggle room for legitimate shorts to cover. One nice announcement and it could cause a major dam break and push the stock to new heights. The next big hurdle will be to see if the stock can break the $4.50 mark. I think it can in the near term, but it will be a big struggle. Once its breached, the next watershed will be $5.00 and that is where I think the shorts will start to get nervous. Eventually the mathematics of supply and demand will take over and shorts will be forced in to cover.
Posted by Stuart Fine at 6:17 AM 0 comments
Add to My Watchlist
What is My Watchlist?