February 12, 2014

Doug Kass breaks his own rule on short selling

"In shorting the shares, I paid no attention to one of my basic short-selling tenets -- namely, never short a stock (it is OK to buy puts, however) in which the short interest exceeds over 5%-7% of the outstanding float or when the short position represents a large multiple to average daily volume."

"With short interest at 30% of the float and 9x average daily volume, Green Mountain Coffee Roasters should have been a nonstarter for me to short. Nonetheless, sometimes (but only in rare instances) one has to reject formula and move out of one's comfort zone. Such was the case with Green Mountain's share price move of almost $50 (or 55%), to $130 last night."

via - http://www.thestreet.com/story/12314090/1/kass-felliniesque-action-in-green-mountain.html