That was a hell of a bounce off the low of 14.05. With a small float like this one has, you get over-exagerated moves both ways. But it looks like the damage is done, there was some support there at the $14 level and now its running back up. If we get some decent action in the market later today, or this week we could easily see $16 again. I have seen short squeezes, and they are nasty if youre on the wrong side.
My thoughts are this: the company obviously wants the price back up, and is convinced that the recent slide is due to the short selling. They went way out on a limb with that letter to the shareholders. I have never seen that done before, so Im sure they are watching the action of the stock with keen interest also since they put the letter out. They also made it public along with more PR about reaffirming guidance for this year. So they are trying a PR blitz also, and if this doesnt work I would look for them to do something else, possibly announce a share buyback. That might accomplish what they want, and they dont really have to buy back much. Just announcing that they feel the "stock is undervalued" and they are initiating a buyback program would have a big effect. If they went this far, and still no results yet, I would look for them to do something else. Right now they arent looking too good, and Im sure they dont like that. BTW, at the end of the CEOcast letter put out monday nite, there was a sentence stating that ERES had paid $7500 plus XX amount of warrants at $13.something. I know this is the fee for being profiled in CEOcast, just wondering if they paid it again plus warrants for that "special bulletin" put out monday night??