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.