Looking at Myer's recent short squeeze, I took a deeper look into what happened during TGR's last short squeeze during the 19th and 22nd of August 2016.
A net of 348K shorts closed during those 2 days, and TGR's SP rallied by at the most 47cents.
Now, there are a bit more than 6 million shorts opened as of the 16th of November, close to 3million more than the position on 5th of September (3.2 mil shorts)
Assuming having 3 mil shorts around at all times is considered normal by the market, then to close out 3 million shorts in order to return to the normal would lead to in theory a a $4.00 rally at the very most in the SP. (3mio divided by 348K times 47 cents). But to be conservative, lets just half that and a $2.00 rally caused by short covering squeeze is possible.
Cheers
Ninja Tuna
TGR Price at posting:
$3.79 Sentiment: Buy Disclosure: Held
