Monsterbaby
Sep 25, 12:59 PM
$REAX update: The stock recently fell from the
$19–
$20 area to a low of
$14.28 despite substantial short covering. Reported short interest dropped 29.3%, from 1.83M shares to 1.29M as of Sept. 15—about 9.6% of the float and only 1.7 days to cover.
That tells us two things:
1. Roughly 537K shares were apparently bought back by shorts, yet the price still declined. Selling from long-term/post-merger shareholders was strong enough to overwhelm that buying.
2. Squeeze risk has decreased. Fewer outstanding shorts means less forced buying available to fuel a major rally.
$REAX rebounded sharply from
$14.28 and closed at
$15.48. Do you think the bottom is finally in, or is this just an oversold bounce before another leg lower? What price level would confirm the bottom for you?
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