Zeev, What you say is true, BUT it dodges the main issue: That as of Feb. 10 they did NOT have an outstanding short position against the remaining 1,375,919 shares from the first tranche.
The outstanding short position as of Jan. 31 was over 1.275M shares. So to connect this data point to our Feb. 10th date, let's look at the stock chart. The price was about $7 on Jan. 31, traded no higher than $7.5 before Feb. 10th, and did actually trade lower for two days. I would deduce that CC did not increase its short position in that time frame, and may in fact have done some covering when the price went to $6.5 on the 9th, but since total volume was only about 100,000 shares, they could not have covered more than 50,000 and probably fewer shares. So their short position on Jan. 31 was probably about the same as it was on Feb. 10th, meaning they were still long the 1.375M shares on Jan. 31.
Conclusion: someone else was short at least 900,000 shares at that point in time (Jan. 31). Those have not yet been covered. We will have a squeeze. |
