Friday, February 13, 2009

Cabella's in a bullish trend

In my post "boy did I goof" earlier this month, I discussed that stocks can both have a Price and an intrinsic value. One of the three intrinsic value categories is "short interest." High levels of short interest can cause Price to rocket, therefore I hold a longer term investment in Cabella's, ticker symbol CAB.

Cabella's is a huge sporting goods store chain spread across America. Since their stores are spread widely across the country, they also have a huge mail-order program. Their customers include most sports enthusiasts, wanna-be's, and customers who wish to buy high quality clothing, outerwear, and footwear. Their stores are large, well lit, and often include a food court, thus offering a welcomed rest stop from a long drive. I love the stores, the catalogs, and I love the stock right now. is a wonderful site to research CAB's short interest.

Short Interest (Shares Short) 9,892,500
Days To Cover (Short Interest Ratio) 27.2
Short Percent of Float 22.76 %
Short Interest - Prior 9,984,200
Short % Increase / Decrease -0.92 %

From this information, we can see that there are almost 10 million shares, or almost 23% of all the stocks shares are being shorted. That means that there is a guarantee that these shares will eventually be purchased.

At average volume, it would take over 27 days of continuous buying to satisfy that debt, and buying has begun reducing the burdon by almost a percent.

This is HUGE!

As I analyze Cabella's daily chart, I can see a 32 day bull market, therefore, I am in! I currently hold a small position and plan to add more as politics and consumer sentiment become more favorable.

It's just good Market-Tao.


  1. mike, you're all over the show. I don't know how you keep track of it all. I could never do it.
    Between the financials and handful ETF, I'm swamped!
    Will look at this data and post response.

  2. I do like what I see there from the 2 year. Money flow is good, it is bouncing on top BB, no real biggie. But what catches my eye is the bounce of the 50/ 25 fast, slow stochs respectively. 32 day sma in the right place.
    Is the macd 12/26 actually over zero there?
    Ri/Re, would set stop @ 4.29.

  3. Huh? I'm not really sure what u are saying here.

    OK. I understand the 12/26 MACD, but I use different settings, close to the ones recommended by the pros at Those settings show that we are a bit above the zero. Further, there is a HUGE slingshot divergence on the weekly chart.

    My BBand setting are as John Bollinger recommends, 20,2 which are expanding (yay!) to make room for future growth (Ye-freaking-Haw!).

    I do not understand your stochastics setting, or Ri/Re. I have never used a 32 day sma (only watch 20 and 50 sma's). Teach me please?

    KM, you do make a good point, This will not be a prominent and long term position for me. I simply hope to generate some fast (until most of the shorts are covered) profits that might be compounded in my ETF mainstays once (eventually) they are ripe for investment. It's just so good that I can't resist being involved.

  4. mike,
    Sorry for any confusion on my part.
    What I did when reading this post was jump to ST w/o signing in (cuz I just logged out) and used their default BB 20/2, MACD 12/26, STOCH 5/1 are the settings, I think, and was at 2 yr daily. I figured that would suffice. The 32 sma came from your comment of a 32 day bull. and was just being creative. So 20, 50, or 32 sma are all converging in that same area.
    I was just getting a quick glance at this CAB thing. And have to say this looks better than other recommendations I've seen recently.

    If you ever have the time, I'd really like to see the lines/indicators/graph that make the slingshot divergence.

    Excellent work here, mike. You really impress me with your breadth of stocks.