Buying a stock on high short interest is always dangerous. Because you never know how long shorters will hold it down.
I really can't believe there any many sellers left and if there are its probably retail buyers who have recently bought and have stops in that MM's try and trigger them bringing the price down even more causing more selling.
To me it is still a good bet. I don't see BK as a possibility with all the restructuring of the company. If they wanted to go BK I don't see why they would try and bring the company back.
R/S is a possibility but it would have to be pretty high ratio. I would have to guess like something like 1:10 to 1:20. Now I know shorters don't have to cover necessarily but the only problem is the liquidity of the stock. Which would be alot less and there is no guarantee the stock will go down after the R/S. So I would expect a little pop before then.
Also at the current price I really don't think any institutional investors can or will buy at these price levels.
So I see only 3 possiblities.
1. Going to the OTC market 2. R/S 3. Merger or Buyout
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