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BlackBerry Short Interest Hits Multi-Year Low

There have been quite a few BlackBerry (NASDAQ:BBRY) bears in recent years, and rightly so. The company has seen revenues decline by almost 90% from its peak, while a series of transitional periods seem to be taking forever. Interestingly enough, the number of bearish bets against the stock have recently dropped to a three plus year low. In this article, I look at the latest data on short interest for BlackBerry, and detail why I think shorts have covered.

As you can see from the chart below, short interest has recently taken a sizable fall. Almost 10 million shares short were covered in the first half of October, putting short interest at its lowest point since June 2012. Since the recent peak in July of this year, more than 27.3 million shares short have been covered.

(Note: Last data point on chart is for settlement date of 10/15/15)

So why are shorts running away from this name? Well the first reason just seems to be a case of simple profit taking. As you will see in the chart below, the number of shares short jumped higher earlier this year when BlackBerry shares were...