First, check the stock chart on VHC for a taste of what this situation could become.
Now, in regards to RST, consider the following:
The company has $6 in cash. The enterprise is therefore only priced at $7.50. Do you really think that this $250 million top line company is only worth 8 times monthly revenue? Really? The name alone is worth that - the name alone.
25% of the shares are short. The spark is coming. This bad boy is about to enter the 3rd phase of an expansion with respect to upside volatility. Watch the land grab for the shares.
Potential Catalyst - University and government deals, possibly other.
The Buy Signal - The lawsuit of course. Lawyers are scum and this is simply part of the process of doing business in a socialist state. It is a classic buy signal.
You guys who are short have made your money - don't fall in love with something that no longer works.
Up despite a crap report and an inept management. Not going down anymore. Opening print was the low of the day. A dawning realization that it is time to cover. Shorts can't hide here anymore. Oh, and the technical picture is also very nice. Close at 14 1/2 today.
One thing I have learned about trading/investing in the stock market is that it does not care what I or you think (i.e. we are small fish).
But, this is what I see (not think) with RST today. The weekly and daily charts for RST are trending downward. So until the trend changes, RST appears to be headed lower over the coming weeks/months. This could all change, but for now, that is what I see, not what I think.
"Trade what you see, not what you think", is what I try to tell myself before, during, and after I place a trade.
Earnings on 2nd of May! It going be horrible. They been airing there 30 second spots everywhere. I do not think it is working. No attractive personality to hook the viewer. I am short too and finally going to score big. Good luck!