Well, I'm not sure. Probably not positive short term as you can no longer count on covering for fuel, but covering is not a natural value event anyway. As you know, long term, it's not prudent to invest in anticipation of short covering. I believe the spike , and subsequent fall, was fueled primarily from said covering - induced by improving fiscal prospects. The massive covering could be construed as bullish long term - 12 to 24 months. It should be interesting to discover next month whether the stock was heavily shorted back down to these levels, though not necessarily telling.
Ultimately, RDRT will perform well over time if they return to and hold profitability. They appear to be entering a 12-24 month cyclical profit cycle. Add the potential of Scion and the inevitable (some day) return to favor of tech during that period, and you have the potential for a nice investment at these levels. I bought more today.
Lots of "ifs" but hey, nature of the game. |
