Research In Motion Ltd(NASDAQ:BBRY) will be announcing its quarterly results on Thursday and ahead of it, short sellers are already active on the counter.
Some technical analysts have said that the technical charts that the stock will be facing a bearish trend in the long term and have advised investors to play short in the stock.
According to exchange data released on Tuesday, short interest in the stock is now at record levels and has more than doubled in the last one year.
The Street is expecting the company to report a loss for the quarter, compared to a profit in the year-ago quarter. They are also expecting the company to reveal the sales figures of its Z10 smartphones and give some indications of its future expectations.
Short interest in BlackBerry’s Nasdaq-listed stock has risen to more than 155 million shares, up from 136.5 million shares a month ago and 60 million at this time last year.
Markit, a financial information services company, said in a report last week that positive reviews around the Z10 have thus far failed to impress short sellers, with demand to borrow shares in BlackBerry hovering at record levels.
The number of short positions indicates that over 30 percent of BlackBerry’s free float is currently being shorted, up from about 11 percent at this time last year.
Apart from technicals, the bearish trend in the stock has been aggravated by reports that the response of the Z10 in the United States was less than enthusiastic and analysts are already tending to write off the company.