Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

Sorry, I missed your post over the weekend, responded to bear, but did not address the short position. The short position has no gone up for almost four months now and is slowly declining. When that happens and the stock breaks up, more often than not, the short position continues to shrink, and since it is so large, in this case, it could actually serve as fuel for additional growth. I think that few month back, BLTI had to restate their earnings and balance sheet for the years 2000 to 2002, the shorts saw this as a negative (and indeed the restatement resulted in reduction of prior years figures, but not drastically). It had to do with the language on the selling documents and the fact that (then), BLTI had residual "risk" (or partial ownership until the equipment was fully paid for). That has been, since then, corrected and BLTI, once they sell the equipment, no longer have residual ownership. If a lot of equipment was being returned, that could have been problematic, but they do not experience such problems, so I think that the impetus for shorting that was there few months back is no longer there. Of course, a breach of about $15.85 on a closing basis would indicate that something is not "going according to plan" and should be watched. Right now, it seems that BLTI refuses to visit the bottom of the current box (just around the last breakout).

In edit and just before the open got OVTI here at $54.70 and ERTS at $46.58.

AMGN, however went minutye or two later (near the open) at $61.70 for $.60.