NEW YORK (TheStreet) -- For BlackBerry (BBRY - Get Report) longs, 2014 has been great, with the stock up over 35% year-to-date. On the flip side, it has been a torturous ride for the short-sellers, and there are still plenty left.
Of the 471.6 million share float, roughly 94.5 million shares are sold short, or 20%. With a short interest that high, it tells me there's still room to squeeze on the upside.
Couple the moderately high short interest with positive news from the company, and it's a painful disaster just waiting to happen for the bears.
For the record, I was a BlackBerry bear in 2013. In January, I turned neutral on the stock.
Between my not-bearish-anymore piece in January, and my Don't Short BlackBerry article on Feb. 21, the stock rallied 20.11%. The stock has stormed even higher since that article in late February, up over 10%, before fading lower on Thursday.
In my last BlackBerry article from February, What's Next for BlackBerry?, I wrote:
Market sentiment is much better than it was during its disastrous 2013 run, which was littered with product failures, incompetent management and rampant spending that could make a Kardashian look cheap. Hell, the company couldn't give itself away last fall."
With earnings set to be reported March 28, I would cautiously recommend not shorting the stock. If you have to be short, consider doing it via put options, so that your risk is defined and you know your maximum loss."
Any takeover chatter, 'profitable-sooner-than-we-originally-thought' talks from management, or a ballooning valuation for BlackBerry Messenger could send this stock into the double digits in a hurry.
Sure enough, the stock quickly rocketed higher, through $10, and found stiff resistance near $10.75. Technicians could argue that the stock is putting in a bearish double top, which is illustrated below, compliments of StockCharts.com: