I am also short AZO, but this is really a leap to conclusions and complete speculation. I am sure Eddie L has a team of lawyers informing him on what is leagl and what is not, and what he can get away with and what he cannot. I firmly believe AZO uses borrowed money to buy shares to keep the the share price inflated and this will someday correct itself, but unless one can find evidence of massive SECRET insider buying and selling, there is nothing illegal about this.
"I am sure Eddie L has a team of lawyers informing him on what is leagl and what is not, and what he can get away with and what he cannot"
You don't think Countrywide had lawyers also? Eddie is a hedgefund with a few lawyers but Countrywide was the largest mortgage processor in the US with more lawyers than you could shake a stick at. And yet the top three executives are now being sued by the SEC. Being that Eddie has such a large position, he can't play his headgefund games like normal. I believe someone, maybe someone on this board, will end up suing him and the company for fraud or mis statements.