Wolverine (WWW), the American casual shoes giant, has seen a large amount of short covering in the last six months. In October 2008, 9% of the company was on loan, compared to just under 2% now. The share price continued to drop between October 2008 and March 2009, from $24 to $13, as investors steadily took profits, but since then the figure has rebounded to $18 and is up 15.5% since last month. This short covering could be an indication that the market is expecting good news when the maker of Hush Puppies, Sebagos and Harley Davidson shoes makes its imminent announcement. This graph shows the short covering in WWW (pale blue line) vs the share price (purple).
Another company which announces shortly is Piper Jaffray (PJC), which has also seen an extremely large amount of short covering - with the amount of its shares on loan decreasing by 500% - from 10% of the company on loan in December to 2% now. Again, this is as the share price decreased primarily from $40 to $20 between Christmas and early March, and then rebounded up to $30 now.