Blake Kilpatrick asked 7 years ago
Hey Pat,
Noticed you have mentioned short interest a few times, what is a number that would alarm you as to stay away from a stock with too much short interest? What’s number might be optimal? Goldilocks if you will....
Happy St. Patrick’s Day!
Best,
Blake
1 Answers
Pat Walker Staff answered 7 years ago
Blake,
Good question. I note short interest but it normally doesn't impact my decisions. If it a good base I'm not swayed by short interest. But, if it a choppier
base, then I heed the number a bit more. Choppy means tug of war between buyers and sellers. Choppy base, wider swings, mean those "shorts" might know something.
Overall, cuz we really focus on these great bases, I don't consider the short interest level too much.One caveat, IF it's a GOOD base with high short interest,I get interested. Why? If it breaks out those shorts may start covering. Gives us even more " lift!"
Hope that helps. Hope you had a good St. Patrick's Day also! Thank you!
Sincerely,
Pat
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