Let me venture a little advice: Be prepare that the overvaluation will extend into the coming quarter.
You probably noticed that there was no addition of company owned stores nor franchisee stores in the 1st quarter of 2005. This was because the 16.2 week 1st quarter's result gave sufficient illusion of "growth".
So the start of 17 company stores and 15 franchisee stores all "WAITED" until the 2nd quarter, again for giving the illusion of "growth".
One good sign, though, is that this moves is yet one more confirmation that PNRA is a "grown" (as against "growth") stock. (Frankly, I cannot see how selling bread can be compared to any of the growth industry.)
It is foolish to short a genuine growth stock, but there is plenty of money to be made to short a "grown" stock.
Sorry, I know very little about those things that you talked about : like "many longs selling" or "shorts continue to add". I don't know why specifically "2 valuation downgrades coming by Friday" because I am not acquainted with any analysts. (As a matter of fact, I detest most of them).
I shorted NOT for trading profits of a buck or two.
By the way, have you thought about how you would react if, God forbid, they successfully mounted a squeeze?