As a recent bagholder (and I know you bashers love calling us that!), I suspect that selling from this potential BK news fueled the fire for more shorts. I wonder what the short % is now, I gather its probably closer to 50%, probably lots of people naked shorting trying to get everyone to sell. The lawyer business doesn't concern me, its expected. If the company wanted a real legal nightmare, then go Chapter 11 right after announcing that they are investigating 3 years worth of earnings. Now THAT would be real grounds for fraud. But who knows. All I can guess is that if we are given at least one or two weeks without any Chapter 11 filing, I think the momo players and short covering will accelerate and this thing should go back up to the 3 to 4 range, maybe more if there is wicked short covering.
BTW I averaged down and out if it does hit that range, crossing my fingers, I still think this thing is playing with fire and I do regret catching this falling knife.
not sure why you are holding, this last 2 months, has been a complete eye opener with Management and the Board. This should never have happened. Although a very tough business environment this process was COMPLETELY mismanaged leading to this company being put up for someone to take a company with good long term assets, on the cheap. What a shame.