Short sales report and thoughts Great post by @Rennaissance:
Measuring by the fudster’s activity in the Outhouse latelly, it is easy to figure out that they are getting scared that the HPQ share price will start to climb before they can accumulate enough shares to satisfy their appetite.
The short report shows that since the beggining of the year, the shorters have been keeping their consolidated short position relatively low. They have been active in shorting the stock, but just enough to keep the share price as low as possible without increasing their short position too much. Obviously, they think the share price is bound to increase, they know the company’s projects are moving foreward.
During the two weeks period covered by the latest report, they have made 164 short trades, which does not seem to be extreme, but when compared to the average of 15 transactions per two weeks period they were doing since the beggining of the year, it shows that they are eager to attempt to kill any momentum the stock is building, like it was building last week. The same can be said when looking at the short volume, they shorted 510K shares during that same period, compared to an average of 63K shares per period since the beggining of the year.
Intensification and sustained buying preassure caused a rapid increase in share price last week, and made it obvious that they are not able to always keep the price down, I also believe they are not interrested in always keeping it down. They only want to have time to accumulate a long position at the lowest share price possible, in order to make money when the share price goes up. And they obviously believe it will soon go up. It would be foolish to sell them your shares now, do not help them to profit at your own expense. An opportunity like the one HPQ is currently building does not happen often in a life time, do not waste your chance.