Snap Interactive (STVI.OB ) rose to prominence when it announced in December 2010 that thousands of new users were signing up to use its online dating platform on Facebook. STVI’s share price spiked from less than $0.25 on December 21 to more than $2.50 on December 29. What a nice Christmas present for shareholders.
It’s currently trading around $3.25, but short sellers are jumping into the trade. With 39 million shares outstanding, 400,000 are currently being borrowed according to Short Side and the cost-to-borrow is a relatively expensive 2500 bps. Short Side is not showing any shares that are owned by institutional investors (pension and mutual funds for instance), so the supply is coming from broker dealers / retail / hedge fund long positions.
No short interest information is available for STVI since it’s traded over-the-counter, so investors should continue to watch Short Side closely.