As of today Discovery communication (DISCK) was 29 million shares shorted. Most of the naked short positions were instituted by Goldman Sachs, Morgan Stanley and Credit Suisse. 6 weeks ago Discovery’s short position was 58 million. The CEO of Discovery sold the great American country network for an undisclosed sum of money which will increase their revenues on August 6th. Like clockwork Discovery stock always moves up in July because of shark week and the added impetus they have with the exclusive rights to the Olympics in Europe. Methodically Goldman Sachs and Morgan Stanley are reducing their naked short positions of Discovery. The CEO of Discovery is making the right moves to increase revenue shareholder value with the merger of Warner Brothers. On August 6th Discovery incorporated will exceed not only their revenue but their earnings per share. In my opinion the financial institutions will have to cover their naked short positions.