92% short - could this be?

I looked at multiple sources that show the sum of total institutional ownership and insider ownership for Cal-Maine (CALM) as greater than 100% of float, with short interest around 90%. I suppose it's possible that this simply a case of spectacularly naked shorting... but share price has gone up, rather than down.

These shorts must have real conviction. Not only are they willing to pay the divided, but if they have to cover their positions, there won't be enough shares to go around, and--if the short interest is really 92%--some of them will lose big.

I don't see anything in the fundamentals to suggest why so much money is betting against Cal-Maine. A big run-up plus higher prices for chicken feed? There's a lot of slower and easier meat out there for the bears.

What's more, is CALM is actually one of the best valued stocks out there, despite the recent run-up. I don't have any at the moment, but I did get in at the beginning of this move and made 70% on some calls. The are the only publically traded egg company in the U.S., and also the largest, controlling over 15% of the market. They're always try to acquire competetors to expand their influnce. I think it's possible that eggs may even be more inelastic than gasoline....so the profits are going to be there for the taking....

htpp://www.freevaluestockpicks.com

This is outrageous!
Why aren't naked shorters called out on their bluff?
It was my understanding that naked shorting is less than legal?
It is my personal opinion that shorting, forex and options trading should come under much stronger scrutiny. These financial instruments manipulate the market and the small investors are left to pay for it.
This isn't what the market was intended for - it was intended to let everyone share in the nations wealth buy investing in it's infrastructure..
What do you guys think?

Naked shorting isn't illegal, as long as there is a 'reasonable' expectation that the shares can ultimately be purchased. 'Reasonable' is entirely subjective, of course, so in reality it really isn't regulated much at all.

Short-selling is integral to the performance of our markets and while probably overdue for tighter regulation (I personally would give priority to the debt products) can never be done away with.

If you want to *share the wealth*, so to speak, invest in the Vanguard Total Market index, VTI. When it starts heading up again, thank the short-sellers for funding it!

hmm... not sure exactly how that works - could you elaborate?
Thanks, V.

Does this mean that if CALM holds on the shorters will eventually have to sell and send this stock even higher?

Of course.

A good trick for the well-capitalized is the "short squeeze". Look for a heavily shorted security (like CALM) and then push it up with a few big orders. This will force a short-covering rally as everyone else scrambles to cover their positions, pushing it up even higher. Then take a short position and dump it all.

This is done repeatedly in bear markets, hence the down-down-up pattern we see so often.

The "short squeeze" would not work in MG because the effect of the virtual stock as no effect on the actual market if I'm understanding you correctly. Am I V4?

Ha, ha, yes hopefully trading millions of 'virtual' shares here has no effect on the real market. If it did it would definitely be a Twilight Zone moment.

The "short squeeze" is really only an option for the market makers; big players and hedge funds. There is nothing for the little guy to do but try and get out of the way when it happens. You can't even ride the coat-tails as its impossible to predict if/when the big money starts moving.

I'm not sure if what we saw with the financials mini-rally previously was a short squeeze, however. It strikes me more as a knee-jerk reaction to blatant market manipulation by the SEC.

good lord if that is true, and those shorts have to cover, that stock will rocket. Easier way to play eggs, buy chickens. When they stop making eggs, there's still high residual value in a chicken dinner. :-)

LMAO @ beancounter's post.