Shorts Fortify Netflix Positions

The short base (as measured by the percent of shares outstanding on loan) in Netflix (NFLX) the online and mailbox video store has risen 15.48% to 23.59%. On June 17th Wedbush Morgan upgraded NFLX from a hold to a buy, since the upgrade the share price is up 6.1%.

Many believe that utilization (which measures the supply and demand in the securities lending market) can give a good indication of the popularity of a short position. NFLX has the 38th highest utilization in the Russell 2000 of 75.72%. Other internet retailer’s Amazon.com Inc (AMZN) and Priceline.com Inc (PCLN) have lower utilization's of 16.52% and 57.47% respectively.

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