To see the vast disparity between hype and reality, lets look at one of the stocks in my portfolio, NewMarket Technologies (NMKT).
Earlier this week, a company called Buyins.com that claims to have a proprietary method for divining the number of short sales issued a press release stating that 14.5M NewMarket shares have been shorted in recent months. It speculates that a huge short squeeze will be triggered on any move above either $.44 or $.46 (the number changes at different points in the press release).
What's the truth, according to the official figures? Look for yourself:
|NEWMARKET TECHNOLOGY (NMKT)||OTC Type: OTCBB|
Bottom line: more often than not, short squeeze plays are pure hype. They are not for me.
DISCLOSURE: I am long NMKT.OB. I am definitely not long a subscription to buyins.com. Not a recommendation to buy or sell any security. For informational and educational purposes only.