I’m capitulating on YY. YY saw a massive increase in short interest during the month of March. As of March 15th, there was short interest totalling 1,196,906 shares, an increase of 129.3% from the February 28th total of 522,059 shares.
We are down about -18% on the trade. Let us sell and realize the -18% loss.
The short interest is coming from the fact that out of 76.5 million monthly active users, only 6.5 million users are paying members. But worse than that, the Chinese government has also shown interest in regulating video streaming services, and unexpected actions on that front could disrupt the company’s growth trajectory.
The large players volume just never started going up which means that nobody is stepping in to buy this stock right now.
The company has fantastic growth numbers but shorts squeezed me out for a -18% loss on the trade.
I’m sorry to let you down on this one guys. I should have known better than to gamble in Chinese stocks. I’ve said many times over the years that I don’t like playing Chinese stocks but I ignored my rule of staying out of China and got greedy.
I’ve got a yellow stick’em on my monitor that reads “Just Say Not To China”, and have learned my lesson on this one.