IMO I believe there is a considerable amount of shorting of CSPI in this post x dividend environment. This stock has always had a good many of non-believers. For many good reasons in the past years. I'm not sure I'd be comfortable shorting a stock due close to $40 million in royalties over the next 8 years paying a 5.8% dividend at current prices.
Are you sure about that royalty income figure? I got the impression from the second quarter 10Q that royalty income is largely a thing of the past. Otherwise I would have bought some based on past performance.
You might look into how many E2D Aircraft has been delivered and how many E2D aircraft the military wants to buy? When you find that number of planes yet to be delivered, multiply the result by around $650,000 for the royalty plus add in another $50,000 or so for parts.