short interest theory

Share Repurchase Plan
it is the planned repurchase of shares by the issuing company from the open market. this action comes into existence (a) because the company thinks that , its shares are undervalued, or (b) because the company wishes to reduce the number of its shares outstanding to increase its EPS. A reduced number of shares in the market increases the value of the shares thus reduced in number.

Short Interest Theory
The theory that a large short interest is the predecessor of a rise in the price of a stock.
The reasoning behind this is that the short positions must eventually be covered, which means that there will be more purchasers of the stock who in turn drive the price up.
Short interest is the total number of shares sold short, but not yet repurchased to close the short position. This theory postulates that a large short interest in a particular share presages a rise in the market price, because although short selling reflects a beliefs that the prices will fall, the fact that the short positions will have to be eventually covered, will cause the prices to rise. The selling, in short, will have to be covered by buying, and therefore a large short interest is an indication that the market is about to rise.

Short Position
Shares which a person has sold short, by delivering borrowed certificates, but which he has not yet covered by  buying shares to repay the loan, on a particular date.

Sleeping Beauty
A company with very attractive features, such as large accumulation of cash, undervalued assets, and real estate; a potential target for a takeover which has not yet been spotted or propositioned by the  bidder

Shree Profit
it is a weekly investment journal published by Warsha Publications. it Contains regular features of technical analysis, corporate news, fundamental analysis of select companies, recommendations, report on unofficial premiums, and a full page on odd – lot trading.

Short – Term
In investment, accounting and taxes, a period of one year or less . In the money market short – term means three months or less.

Small Investor
He buys and sells in small quantities, just can be tolerated by the stockbroker , and although he may be a part of a very large crowd, his individual importance to the company or to the stockbroker is near – non – existent.

Snowballing
When the price of a share reaches a certain level, it activates a number of stop orders, for  buying  or selling . This exerts further pressure on the rising or falling market, activating more stop orders, creating further rise and fall in a snowballing effect.