Wednesday, April 25, 2007
Short Interest In SDARS
April 25, 2007
Seems a popular trade these days is to short SDARS. Those that took this path have nothing to complain about at this point. They have made a nice return on their investment decision. The question at this point is how long the short interest will remain a player in SDARS.
..................APRIL 15................MARCH 15.................CHANGE
SIRIUS..120,435,858.............123,631,119...............-3,195,261
XM...........30,854,117...............31,202,313..................-348,196
There has been a very slight decline in short interest, but clearly the shorts have not vacated that position en mass. With earnings coming up tomorrow for XM and next Tuesday for Sirius, it will be interesting to see what the play is.
Perhaps more interesting than the short position is the number of people sitting on the sidelines. These investors are simply waiting and observing at this point. If selling stops and capitulation happens, these equities could be very interesting to watch. The conference calls could give an indication that each group is looking for. Average calls likely means the status quo....drifting equities. Positive calls could bring new money into these equities. Negative calls give the shorts all the ammunition they need. As long as sentiment in this sector remains at the current levels, there is no reason for any particular group to change strategy, and right now, uncertainty rules the day.
XM will set the stage tomorrow. Watch street reaction closely.
4/25/2007 11:32:00 AM
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