Does Short Interest Affect Your Decisions in Holding a Stock?
During Jim Cramer's members-only Action Alerts PLUS monthly call, he was asked "does short interest ever affect your decision holding a stock?"
"You know" he told Action Alerts PLUS senior analyst Jeff Marks. "...if we were more trading oriented it would, I think that we look at it to see whether people are betting against us." said Cramer.
Marks added, "Well remember that one quarter, two quarters ago from Palo Alto networks. It was a good result and this is before it really got its footing."
TheStreet Explains. Short interest is the number of stock shares that are sold short, but not covered or closed out. Short interest can give you an indication of just how bearish investors are toward a given stock's price. Short sellers are betting that a stock is going to decline from current levels, allowing them to sell their shares at a profit after a pre-determined interval.
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