I'm puzzled by the number of posts that are speculating on an "explosion" of short covering and mad skyrocketing of price. Really? When I break things down, this is how they come out for me:
1. If they had news (good news) they would release it and push the price up on it's own. So the old, "the news is so good they we have to screw you with an R/S first" logic is out. This one doesn't seem pass the stink test.
2. If they were getting ready to sell, with no news (or news so lame that they didn't think it could get a company that has traded for $4 plus in the past few years over a $1 now) it would most likely NOT be in the long investors favor.
3. They have no news and don't anticipate releasing anything significant any time soon so they do an R/S. This is the most obvious and most likely.
4. They have no news AND are planning on screwing us further with an ATM. They already have a long history of a pumping PR followed by ATM. I tend to think this is the most likely but I am bitter so I gave it to #3.
What am I missing here? It seem like there's a lot of people hugging and saying "it's going to be OK" to each other here. It might not be OK. I certainly hope I get some of the thousands I've lost back, but come on. It's not looking likely any time soon. An R/S is NOT a sign of health and it tells a story of a lack of confidence in getting better. Really, what am I missing?
AI
