Please help interpret this short interest ratio (what does it signify)?

Please help interpret this short interest ratio (what does it signify)?

I have a position in the stock APKT. It dropped $10 on Friday, and now is at its 52 week low. My position is at 32.50. I read a tweet where people said it was a short squeeze candidate. I went and read about short squeeze, and it doesn't seem based on what I read, that APKT is a short squeeze candidate. There are 66 million shares outstanding, 54 million shares float, there are 3.72 million shares short. The short ratio is 1.70, and the short percentage of float is 7.0. Thanks for your input.

Ans:

The short interest ratio is the number of shares short divided by the average daily volume.

When looking at information about shares short, it is important to note that the figure published is usually out of date. As of now, the information on Yahoo quotes is from Sept. 30. So, 1.7 is the number of shares short as of Sept. 30 divided by the average volume as of Sept. 30.

There is one factor that may make it a better short squeeze candidate than you suspect. 18% of the shares are owned by insiders and 80% of the shares are owned by institutions. Insiders and institutions are usually not active traders, so the number of shares actually trading is probably a lot smaller than than the float.

I do not follow the stock and don't know what caused its recent decline, so I will not offer any opinion about how good a short squeeze candidate it might be.

Source(s):

http://finance.yahoo.com/q/ks?s=APKT+Key…