I faded the gap on Sept. 7 at 28.41. It looks like it's on track to close the gap. I'm trying to decide whether to close the position when it does or make it a longer term short. After all, it is the time of year when bad things happen to the market. What's the knock on SHFL besides the debt?
The biggest knock on SHFL is that the smart hedge funds and the stupid hedge funds together own more stock than this company has issued. Moreover, with the stock that is owned by the individual investor as well as the manipulating insiders, there is almost 300% of the float outstanding. This is a situation that is untenable. That is why as an experienced trading conglomerate, we have been able to consistently trade all of the highs and all of the lows. Our current position is short the calls with a midterm long bear straddle.