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To: Just My Opinion who wrote (4922)9/12/1998 4:02:00 PM
From: jhild  Read Replies (1) | Respond to of 26163
 
V: IMO, if the court order scenerio is true, then the companies value is probably secondary.

I have to disagree with this because ultimately the value of the shares will return to the underlying value of the company after the short is covered in this hypothetical short squeeze. This being the case, one can make the argument that the shares are already overpriced. When the game of Musical Shares is over, only those shareholders that actually sold will have profited. Since the shares may tumble from this fanciful $20.00 figure to their underlying value likely closer to 2&cent's, there could be quite a scramble for the door, when the last short share is removed.

It's a giant game of chicken, with the insiders in the driver's seat and able to cash out at will. Keno looks like better odds to me.