Does 50 % of the float being short indicate a short squeeze ? The stock also went up 25% today at the maximum , normally it is an inactive dividend play which is what I wanted. I put in a short at 10% gain on the day. Generally , what action is recommended if you are in an unintentional short squeeze ?
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Cramer questioned the amount of short-interest on BGS– Hart COCommented Jan 25, 2021 at 20:22
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Your behavior is odd. If you care about dividends only, you hold the stock as long as you trust the company will continue/grow the dividend. Do you think that your dividend yield goes down when the price goes up? That's only for newly-bought shares. As a long-term stockholder, you will continue to get the dividend yield that you signed up for when you originally bought stock. (Assuming no dividend cut by company management).– Orange Coast- reinstate MonicaCommented Jan 27, 2021 at 5:41
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I collected several years dividends in a day . Then I will buy other dividend stocks or even buy back BGS at a much lower price.– blacksmith37Commented Jan 28, 2021 at 18:51
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1 Answer
The size of the float being short does not indicate that a short squeeze is occurring.
Before you can consider today's price move to be a short squeeze, you have to scan the news to see if there is a fundamental reason causing today's price move (earning release, analyst recommendation, etc.).
Determining whether it's a short squeeze or not is irrelevant to your action. Your risk management should be based on price not labels.
answered Jan 25, 2021 at 19:58
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Without and substantiative news, it smells like a short squeeze. Commented Jan 25, 2021 at 20:54
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Given that it closed at $34.03, IMHO, a lot of smart people booked gains from $39 to $41.66 Commented Jan 26, 2021 at 0:29