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Why AutoZone's short positions got squeezed?

|Includes: AutoZone, Inc (AZO)

I was shocked when I saw AutoZone's lousy balance sheet and its high stock price.

  • Total equity: -187.30 million in Q1 09
  • Increasing inventory(in million US$)
    • 1,663.86/2005
    • 1,846.65/2006
    • 2,007.43/2007
    • 2,150.11/2008

Anybody short it? Of course! But many guys's short position got squeezed, let alone those puts got expired.

Market manipulation? Yes! But where is your evidence? That's what this artile will show you.

Let's see major holders of AZO. Institutions hold 108% of float shares!!! Short squeezed? Absolutely!

  • RBS PARTNERS, L.P. hold 40.67%, 23,370,297 shares. This hedge fund is backed by billionaire Edward Lampert.

Short interest rate are so high that this offers market maker a good chance to squeeze your short position.

  • Shares Outstanding5:54.69M
  • Float:54.08M
  • Shares Short (as of 10-Mar-09)3:6.22M
  • Short Ratio (as of 10-Mar-09)3:2.8
  • Short % of Float (as of 10-Mar-09)3:11.50%