Wednesday, October 30, 2002 :::
Motley fool has a story on Research Frontiers, Inc. in their annual "tricks and treats". 18% of the float is short, and probably with good cause, but 30k shares trade each day at around $11, giving a short interest of 61 days of trading.
If you had a couple million dollars (and no moral qualms -- you'd be making a profit, arguably, by making the world worse off rather than better off), you could probably profit off a squeeze there; enter a 10k share bid at 12 one day, 13 the next, 16 the day after, etc.
As I said, I have neither the money nor the desire to do this, but the moral of the story is that you shouldn't short more than your equity can handle. I should keep this in mind, myself, as I've been shorting airline stocks at 20% of their peak prices.
::: posted by Steven at 3:22 AM
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