reasons stock is getting hammered (1) forced hedge fund selling (2) short sellers are hitting every bid to increase their posiiotns. (3) Many are shorting the shares in order to hedge their long bond postions (PBY's senior bond has traded in complete opposite of the common, increasing as the common decreases)--one fact not to be overlooked.If you live by the sword you die by the sword..the shorts have made a ton of money, but they are also sitting on a potential time bomb that could explode into a tremendous squeeze.The shorts should probably think about covering so they can book their profits( getting too greedy at this stage is quite dangerous) before those profits quickly evaporate and turn into losses.
Short interest should be out Monday for 1-15-09. I actually expect to see a drop from 12-31-08 as the smart money has taken advanage of forced sales to cover their positions. Not much benefit of shorting a stock under $3 unless you realy believe odds are 90% of them going to zero. The ones that shorted above $7 knew this was going to happen. The fact that bonds have gone up only confirms that the smart money knows what is happening. Bond players have always been known to be smarter than equity investors. Once selling pressure is over we should bounce above $4 quickly and trade in the 4-5 range till fourth quarter year end comes out. I am looking for 4-5% sales decrease for 4th quarter which is an improvement. DaninFW