So it would stand to reason that should some unexpectedly good news come out, and short sellers did not have 17 days of patience but instead wanted to cover their short positions very suddenly, that situation could result in sending the stock higher until the higher price produces enough sellers to generate the necessary volume to close out those positions quickly.

Abraxas Petroleum Corp. ( AXAS) has something relatively rare for a stock with this much short interest, that being insiders taking the other side of the trade. Looking back over the trailing six month period, AXAS has seen 5 different instances of insider buying, as summarized by the table below:

Purchased Insider Title Shares Price/Share Value
01/08/2013 Brian L. Melton Director 1,500 $2.21 $3,312.00
01/08/2013 W. Dean Karrash Director 5,000 $2.25 $11,227.50
01/14/2013 Edward Russell Director 5,000 $2.25 $11,250.00
01/08/2013 Harold D. Carter Director 2,000 $2.25 $4,500.00
01/18/2013 Brian L. Melton Director 1,750 $2.18 $3,815.00
01/29/2013 Paul A. Powell Director 5,000 $2.14 $10,700.00

Below is a chart showing the "days to cover" for AXAS over time:

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