Probably because everyone jumped on the short bandwagon because of the earnings. Having that many shares short only increases the chances of a short squeeze. Since the introduction of online discount brokers, the market tends to act like a herd of stupid lemmings. With book of $3.25 and flush with $36M cash for acquisition/expansion, I think being short right now wouldn't be smart. That isn't to say I'm loading up the boat to go long either. I see the stock continuing its consolidation as the previous financing is absorbed. It will be several quarters before we see any real appreciation in share price. However, I do not see the stock dropping much from current levels, at least not enough to make shorting the stock an acceptable risk.
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