Starbucks (NASDAQ: SBUX) has become a short seller’s dream. Shares sold short in the company moved up by 4.9 million to 39.8 million on April 15 compared to the figures on March 30.
Those who bet against the company should have gotten a huge pay day. On the 15th, the stock traded at $17.32, near its 52-week high. But, when the company announced that it would miss both its Q1 and full year forecasts the shares dropped ot $15.39.
Starbucks has lost over 60% of its value since spring of 2006. Most of the bad news is probably out, at least for several months. Look for short interest to drop when numbers are posted for April 30.
Check out the 24/7 Wall St. "Ten Stocks Under $10 Newsletter". It comes out every week, all year long.
Douglas A. McIntyre