Quote:
Originally Posted by NewMoney
I read the following about Nutrisystem (NTRI):
"With 34.21 million shares outstanding and 14.17 million shares declared short as of September 2007, the failure to deliver in shares of NTRI has not been resolved and a buy-in is imminent."
Can someone explain what the above means, please? What do they mean by sold short and a buy-in?
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it means NTRI has 34.21 million shares that are owned by the public, theose are the outstanding shares, those that have been sold by the company.
14.17 million shares have been sold by investors that don't own them. They anticipate the price going down and they hope to buy them back at a lower price. They had to borrow those shares from others and the others may want them back --creating demand.
a buy in is where those who sold short now need to get them back at the current market price. The market price may go up sharply because of the forced demand from those who sold short.
hope that helps, in you have any other questions, email me and I'll try to answer them
here's an article with a better explantion than mine
How Do I Find Short Interest for a Stock?