Technical Olympic USA, Inc. (TOUS)

[deadcat123]

Both sold their shares that they bought a year ago for more than $10 per share. They sold probably to write it off against their other gains for tax purposes. If TOUSA is going to file for Ch. 11 any time soon, I bet they would get into troubles by selling their shares just days or weeks before the Ch. 11 filing because that would constitue a sell based on insider info.

Now, the question is whether TOUSA will be forced to file for Ch. 11. The market force it to file back in late Oct and early Nov. The short sellers HOPED that TOUSE would file for Ch. 11 and heavily shorted TOUSA's stock so it got delisted from NYSE. They (shorts) hope that by NYSE delistment, TOUSE will get technical defaults on their loans and would be forced to file Ch. 11. Well, so far, TOUSA has NOT file Ch. 11 yet and today's 8-k just showed that TOUSE is working hard to get their loans amended! We could get a short squeeze by next Monday when the PRs of these proposed loan amendment No. 2 get signed by its lenders by this Friday. It's still a gamble, but the odds is getting better for TOUSA to avoid Ch. 11!

Tomorrow, Thursday and Friday would be interesting to watch. We could get some short squeeze late this week as lenders start to agree on the loan amendments by this Friday. If TOUSA can avoid Ch. 11 filing and restructure it capitals out of court, its 60 mil outstanding shares are worth at least $2 per share, that give it $120 mil market cap, adding to whatever the debt-for-equity exchange! The short squeeze could easily push TOUSA pps back to $4 in a few days!

The other 8-k filed for Wegman today gave an indication that TOUSA is not going to file for Ch. 11 any time soon, otherwise Wegman will not accept this change and wait until Feb. 15 2008 to get his 2007 bonus!

All signs are in favor for longs and shareholders that TOUSA will fight hard to avoid Ch. 11. I would not be suprised if TOUSA's pps jump back to 60-70 cents by early next week!

JMO