CNBC has finally begun to talk about Cityscape. It's amazing that they are so behind the times. Joe Kernan said something like: I've seen this pop-up on my screens for volume and percentage decline, but I've just now had some time to get up to speed on what's going on.
They haven't talked about the dilution issue too much, but mainly the trouble with British regulators, and the recent report that earnings will be significantly lower.
Maybe I'm wrong (I have been so far on this stock), but when I short a stock, as I'm now short AVNT and MSFT, I want them to be at a high P/E and near the top of their trading range. Sure, you can say that 3 to 0 is doubling your money just as 30 to 0 is, but once a stock has already fallen 90%, I wouldn't short it. Also, I think that shorts are often more sophisticated than the average investor, as most people never use this investment technique, and because of that I think that people who were looking for short positions to open would have found CTYS before today. Therefore, I think that the publicity from CNBC and others (even if it's highlighting the bad news and stock performance), will begin to attract the attention of bottom fishers, and we should see a bounce. I won't guess whether this will merely be a dead cat bounce, or the start of a recovery. Maybe we'll even get lucky and see a crushing short squeeze, especially if it turns out that short interest is way over the float. |
