If you continue to sell short you are a class A idiot. CMLS will report knockout earnings and reach at least 5.25 in the next 5 days. If the market dips tomorrow due to Libya I have a limit to buy all I can at 4.40.
It amy work, but the Street may also go "ga-ga" for this deal, more....and with CMLS as thinly traded as it is, you're potentially playing with fire.
That having been said, I was surprised that CMLS management outright said that the deal will be accretive, ONLY with the cost reductions resulting. And you can figure, if ETM was the 2nd highest bidder, and walked away, CMLS is paying a pretty penny for these assets. I mean, David Field of ETM has been one of the most bullish players on where this industry is going. And yet, CMLS outbid ETM??
Are you looking for a quick profit, on a drop back to, say, $4.25? Or something more dramatic?
As I say, the danger is that the mo-mo players could take it up to $6-7, before it goes lower. Hard to say. But it's not dramatically overvalued at $5. Just much closer to being fairly valued.