Thursday, April 12, 2012

THQI - Short Squeeze?

In a week we'll have a fresh set of short interest data on THQI and I think we'll see a much larger percentage of shorts in the stock.  These shorts will be betting on a decline in share price, but I think they will be wrong, at least over the next few months.

What I see is a stock that has been beaten down on bad news and short sellers.  A stock that seems to have solid support in its current $.48-.52 range.

I still think THQI sees a rally to over $1 a share in the short term.  I feel this will be partly the result of a short squeeze.

I am not perfect at finding the bottom for stocks, but I do feel we are seeing one form for THQI.  The short sellers who are piling on this popular trade will be paying 100% more to cover their shares if they are not careful.

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