s amrtin: Actually, there would be no reason for the shorters to cover. The longer they waited, the more probability there was that they would never have to cover, until Riley and the rest of the "good" guys came along. This company was on shaky footing, I doubt if anyone will argue with that. That in itself is not bad, lots of small companies have their times of troubles.
Now to me, the REALLY funny thing would be the following.
Lets say the squeeze starts to kick in.
Gary and Roland issue 100,000 shares at the market price of say ten.
They decide to change the business, and become an investmeny company. They take the million they got from the 100000 shares the company just sold and buy 30 year treasuries.
The companies only income is interest income.
That doesn't matter, because there is a short squeeze on, and the MM's have to pay a couple of hundred dollars a share for a company that is only making 60,000 a year in income.
Now the squeeze potentially never ends, because there is always 2-3 million shares outstanding ( sold) that do not exist.
At some point in time, the company decides to issue some more stock, getting say 100 million in proceeds.
They then take this money and leverage it, and buy who knows what.
Man, I like stories like this.
Really gets the old "what if?" part of the brain going.
Great idea, huh? :-),:-),:-)...al
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