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Short Interest is the total number of shares of stock currently sold short in the market. Some technicians interpret high levels of short interest as bullish, some as bearish. The bullish perspective is that, because all short sales must be covered (i.e. short-sellers eventually must purchase shares to return the ones they have borrowed), short interest represents latent future demand for the stocks. As short sales are covered, the demand created by the share purchase will force prices up. The bearish interpretation of short interest is based on the fact that short-sellers tend to be larger, more sophisticated investors.
Accordingly, increased short interest reflects bearish sentiment by those investors “in the know” which would be a negative signal of the market’s prospects. Investors with brokerage accounts will often leave credit balances in those accounts when they plan to invest in the near future. Thus, credit balances may be viewed as measuring the potential for new stock purchases. As a result, a buildup of balances is viewed as a bullish indicator for the market.
As of October 15, 2015, short interest for Grupo Financiero Galicia S.A. – American Depositary Shares, Class B Shares underlying (GGAL) stood at 2701142 shares, an increase compared to 2256291 shares on September 30, 2015. This short interest comprises 3 percent of the entire float. Short interest ratio now stands at 7 at the average volume of 362153 shares.
According to the latest short-interest data for the two-week period ended October 15, 2015, short interest for the stock of Himax Technologies, Inc. – American depositary shares, each of which represents two ordinary shares. (HIMX) increased from 5847829 shares at the end of the settlement date of September 30, 2015 to 6829823 shares, marking a drop of 981994 shares. The current short interest accounts for 4.87 percent of the company’s total outstanding common shares and the days-to-cover short interest ratio, on the other hand, is 3 as of September 30, 2015, assuming average daily trading volume of 2153445 shares.
Short interest for the shares of Baozun Inc. – American Depositary Shares (BZUN) rose 16.6 percent from 356908 shares on September 30, 2015 to 416005 shares on October 15, 2015. Investors have taken short positions on 1.02 percent of the total common shares of the stock that are floating on the exchange. The days-to-cover short interest ratio is now at 2 days. It is based on average daily trading volume of 233690 shares.
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