Applied Energetics, Inc. (AERG)

[Brimstone]

What a Day!

Wow, the market is getting killed on all the terrible Middle East news and suddenly a money manager decides at 3:35 that he had to own another 500k IOTN at any price before the close. Then 2 class action suits magically appear out of 2 no name law firms in Connecticut. Duh! There are two kinds of motived money managers. The first kind is one that is long and decides to get out, period. The second is one that is short and decides he has to cover fast. It wasn't a long today, it was obviously a short who was covering. Was it news that a JIN contract was imminent? I doubt it. Was it a naked short, who got the word from his broker that naked shorts had to cover because the SEC is about to crack down on naked shorts? That's my bet. The really, really smart short started covering today. The less smart shorts called in the class action suits today to try to minimize the damage. All of a sudden there is a panic brewing in the short story. The Artis filing along with the SAC position is setting up a classic hedge fund battle. Those 2 funds own 40-45% of the float. It's amazing that the short squeeze started at $6.50 instead of $14, but it sure looks like that is the story. Tomorrow should be interesting.....