I agree, you know my theory. The easy part to see was the shorting, the toughest part to figure was how they were going to cover. I agree with Prospect being the reason this was driven down but it has still taken selling shares short to do it.
(if any MMs went naked short to facilitate PSEC's (possible) short against their block of recently converted warrants, these MMs may now be in the process of covering. as they do so, i would expect to see us rally off the bottom. )
In order to cover they have to buy the shares back... My hope is that noone will sell their shares on a dip and help them create panic selloff which i think they will attempt. If they can create a panic they could cover a huge chunk in a short amount of time.
Also, they have room to 1.22 to cover, noone knows what they hold and at what levels but we know that is where they started putting a lid on the stock. SO i think people should keep this mind when they think they can sell a pop and buy the dip. It may not dip and when you sell you will likely be helping them cover.
Dont even think about flipping or selling under 1.22, thats the line in sand in my opinion. My guess is they (mm's short) wont want to be holding a huge amount short come 9/4/08. But in the meantime anyone who sells should assume they are helping them cover.
All imo.
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