Dex One Corporation (DEXO)

[bradford86]

have you done any research on the total institutional holdings for SPMD and DEXO now that kyle bass has bought in? i feel like the shares short are mostly offset by long institutions at this point.

Dexo for example:
http://www.nasdaq.com/symbol/dexo/institutional-holdings#.UQhkAL-eGSk
81% long by the listed institutions plus the 10% from kyle bass gets to 91% long.

then you have 20% short:
http://finance.yahoo.com/q/ks?s=DEXO+Key+Statistics

so basically if you assume the institutions aren't going to scare out at this point you have a situation... where if the shorts start to try and cover they cannot at this price, as they must find a price where 9% of the institutional holders are willing to part ways with the stock...

another thing is that the investment thesis here has to be crisis price driven, and i'd be surprised to see this trade less than p/fcf < 1 for another few years.. i guess the question is how are the institutional investors figuring the worth here? are they doing it on a crisis equity valuation or on a non-crisis valuation?