The reason, not much selling. So it was very difficult to cover without moving the price up. If you take a look at the trading chart, a small volume of buying could spike the price by 3% within a minute. What would make them cover is when the stock starts to rise quickly, or moves up steadily as in last week. There will be a point when they cannot bear any longer and cover.
I do not think the majority of market participants are waiting for the report from Price Waterhouse. The market is a forward looking mechanism; traders anticipate future outcome based on current updated information. Right now all signs indicate no issue with the company. So the day when the report confirms that could be the day to sell (at high), not buy.
the day that report comes out and they find all is good with the company
the shares will surge
as shorts will scramble to cover
great earning forward guidance
and average price targets of around $35 and thats been conserative
if we didnt have the MW saga the shares would probably be around $30 right now
Superficially, I would say stupidity. Realistically, I would say price appreciation is somewhat capped until the audit comes out. Until then, its hard for institutions and retail investors to buy shares en-mass due to the perceived uncertainties. I also suspect theres been a quiet migration from institutional shorts to retail shorts. You can tell by the amount of short FUD showing up on SA, Yahoo MB and stocktwits. I also think retail shorts probably still think a $0 value is on the table. Despite the fact that cash on the BS alone is worth $2-3/sh and that sales at FL and NS are undisputed. Or the fact that MW has dropped the cash issue.