In case you are new to this momo business. A hedge fund who has a substantial position of FEED and who's advisors tell them that the Ag/fertilizer sector is heading south (See POT's recent downgrade, headlines, etc) So in order to sell their shares at a huge gain they float a rumour about a takeover (Remember the Apple rumour of Steve Jobs being near death and apple's nosedive, perfect example of a hedge fund at work) They use a "Ladder" technique to run up the stock pre/post market and during the trading session with their massive buying power. This trigges BTC orders (Whichlevels their market maker provides to them so they know exactly how to trigger short covering) After this huge run-up they sell their shares at a nice 25% or better profit and then sell thousands of calls (Which will expire worthless) as the rumour doesn't materialize by options expiration. This leaves lots of bagholders (Shares and options), but the hedge fund profits massively.
Oh, and in case you don't know according to Bloomberg over 60% of all daily trading volume is being done by......you guessed it, hedge funds!
SEED even says in there own 2008 annual report that the inability to find credit in these tough financial times may cause us to HAVE to use our working capital to pay down debt. This is listed as a RISK.
read this, and add in the squeezing of shortside asses.
""Origin has never been in a stronger position strategically, technologically, and, most appropriately, financially, in this situation. We are repurchasing our notes based on this strength. Our current cash receipts from this FY 2010 selling season are again the highest in our history, and this should continue to be evident in the first quarters on our balance sheet. We repaid our debt to eliminate any possible dilution and demonstrate our upcoming confidence in the near term future.