Short interest ratio - how much does it matter to you? investment, potential, interest, investor

Mechanic

Hey guys,

When you're looking at a potential investment or trading opportunity, how much do you look into short interest ratio and related metrics? How do you think about these things in the process of making an investment decision, assuming you are a fundamental investor? How does your benchmark for what you consider to be a high short interest ratio vary based on sector and capitalization?

genuinecfa

I think you asked and answered your own question(s) and properly framed the issue: investment or trading?, it depends (sector), and size matters (mkt. cap). I follow short interest in SSYS closely; for SBUX, not so much.

Muddahudda

ChickenTikka Wrote:
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> This wouldn't reflect, or include, the options on
> it right?


I think not. Good question though. Is there some delta adjusted measure of total short interest in a stock that published?

ninja1024

No, but you can look at the open interest for the different series of options.

jcfa2011

This wouldn't reflect, or include, the options on it right?



Edited 1 time(s). Last edit at Tuesday, July 12, 2011 at 11:27AM by ChickenTikka.

cv4cfa

If I have a high level of conviction in a stock, and it happens to also have a high short interest all the better.

ryanlb

very important and absolutely worth a look...ignoring it is like not checking under the hood of a car before you buy it



Edited 1 time(s). Last edit at Monday, July 11, 2011 at 03:23PM by builders.

luda002

Not an uncommon scenario particularly since the SI values are only updated twice a month so if the manager opens/closes a significant short position it is not immediately reflected in the value.

Sunshine4ever

Bloomberg pulls the numbers from the exchanges.

kickthatcfa

These numbers are totally bogus. I knew a PM who had a larger short position in a name in his fund than the total short figure that was published by the exchange.