Amazon.com Squeezes Shorts Againposted by MR WAVETHEORY at 10/24/2006 04:48:00 PM
You can always count on Amazon.com Inc. (Nasdaq AMZN) provider of Earth's Largest Selection to squeeze the shorts. The stock is up 13% (+4.98) at $38.31 after investors learned that things weren't falling apart as quickly. According to the press release, earnings slid but they made it up in volume. Isn't that a great business model? Sales were up 24%. The truth is that this current squeeze after hours isn't all that bad considering we had a decent earnings report. One look at the big old Amazon's historical shorts shows how bad short squeezes can get. This is the Amazon that brought Henry Blodgett who pinned a $500 target on the stock to fame - and hit it too! According to Nasdaq, there were 46.3 million shares short as of the end of September 15, 2006 (via). Based on trading volume of 6.6 million shares, it would take 6.5 days to cover. As of 5 pm, 8.7 million shares have traded after hours. Happy covering!