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To: ItsAllCyclical who wrote (3714)	10/6/2014 12:54:07 PM
From: The Ox	Respond to of 8255

The last earnings report had statements out of the CEO which I saw as encouraging. Now it does look like out right fraud based on those same statements. To go from "we are going to be earning more money than people think" to bankruptcy within a few months reeks of deception. I was betting on trends changing before they had changed. Substantially rising inventory should give one pause. The reduction in net tangible assets is also not good. There are factors that should (could) suggest it's much worse than they admitted. The massive drop in revenue of a competitor is also an indicator to be considered. Lastly, I agree that the size of the short position should always give one pause but not necessarily prevent one from taking a position.