Rich, that hovering area is near a multi year low (I think it printed such last week), and despite the fact that the stock did not go above $5 (were "mortals" can short), the short interest increased by about 500,000 shares in the 1/15 to 2/15 area. Since "Mortals" can't easily short here, who did? Are they often wrong? Most of that shorting must have occurred between $4 and $4.5, thus some covering may provide some support, but I am not betting on that. If on the next swoon down, VLNC does not make a new low, it could be revisited, but only for a DCB type of action, the company's business plan is not showing any signs of being executed or executable. After spending more than $328 MM of OPM, and having absolutely nothing to show for it, I think that funds will have a problem pouring in more good money after bad money. It could very well be that to keep the door opens, VLNC may not have a choice but to take toxic money... This is more or less what Larry B. is saying as well ijh #reply-17132062 and what alluded in #reply-17110657.
Zeev |
