Zeev, Paul, CC is just in it for the money. Give 'em an inch and they want a yard. When they see the current conversion price slipping away day by day, and if they keep shorting modestly each day to try to contain it, then their hand is forced.
I see the strong buyers let the price come down to 'bait the hook' for a CC conversion, and now they'll take it up just as easily. The short MM has given up tens of thousands of shares today in an attempt to contain the price. The strong buying support will simply gently but firmly inch the price up each day, suckering a deeper short position. That way, CC has to take it in the end, just to be sure they can collect any extra shares at all, to cover all the shares sold below $6.
Not on the sidelines here, I loaded for bear at the low 4 end. Just watching and waiting. Ready to continue to take advantage of the retracement back to 5+, then the acceleration in stock price to the 6-7 range. This, based first on short-term short covering (for shares heavily shorted in 5s), and then CC conversion before the window of the $4.4 conversion disappears.
BTW, POs are no problem, IMHO. I'm very sanguine about developments with the company. We're on track. |
