Tonto,
So it appears your reasoning is "history always repeats itself"?
I agree it is an uphill battle for OCOM, but if they succeed, being short will lose many times your investment. Most SI shorts seem to have shorted in the 6's, and are already down 50% or so.
The day OCOM announces that another customer has paid, cash, for their delivered system, this stock will soar 50% or better. Because once that happens, the two main risks, technical problems and cash flow problems, both disappear. It will happen quickly, without warning, and you will have no chance to cover. I would call this "event risk", and OCOM has a lot of it for shorts.
Also, where was the insider selling? Every good short has insider selling, but not OCOM. And in how many good shorts is management investing their own cash, as in OCOM?
I am long OCOM (warrants from pre-IPO days, almost 2 years ago) and still have a better then 150% profit. I can't sell for another year anyway, so I prefer to believe they will resolve their problems. Even if I could sell, I don't think I would right now. Either way, we should know by Oct. 6th.
Dennis |
