I own a stock that is: - One of the highest rated by analysts ("strong buy") - Owned by a number of institutions - Great P/E ratio and PEG ratio - Has great prospects in a solid business - All of the shorts' arguments are easily countered - Beats the earnings predictions every quarter and - has a relatively small cap and float - has one of the highest percentage of shorts - is recommended to be shorted by famous short web sites that are known to have lost lots of money for people (really!) My question is - How long will I have to wait it out for the shorts to lose interest and go somewhere else ? Does anyone have experience with this sort of situation with other stocks in the past? I have never before followed a stock that was being shorted for more than a week or two, Thanks!
Stop wasting time and effort with "fundamentals" and focus on the price performance instead. When a stock makes daily, weekly, monthly and/or yearly highs, there will always be "shorts" looking for a pullback. Let them attempt to eat like a bird and defecate like an elephant.
This has been going on for months with this stock. As of Feb 12th, over 40% of the float was short. That was a typical figure going back several months.
I don't have any problem posting the specific stock - after all I am already long. But, it's not strictly relevant to the question - I'm looking for someone who has seen a similar situation in the past... (so it would just divert the thread into a discussion of that company and that industry).