The coverage ratio in Sharper Image for shares held short it 37 days. In December, shares short totalled over 3 million and the stock trades an average of under 82,000 shares a day.

The Nasdaq has warned Sharper Image that it is outside of listing requirements, again. The stock was near $20 two years ago. It now trades just above $9.

Sharper Image same-store sales dropped 27% in November added to a long list of sharply down year-over-year comparisons. Sales for the ten months ending November 30 dropped 22% to $359 million.

It is hard to imagine things getting worse, but it seems that the smart money thinks it will.

Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.