This stock was nearly $50, 5 years ago. If you think you've felt pain, to date, when we are only up from 35 cents to $1.30, just THINK of the pain you'll be feeling when this thing is PROFITABLE this year (absent charges), and earns, say, .75+ in EPS in 2010.
Why would anyone be short a company that is selling for less than TWO TIMES next year's earnings?
The SMART shorts are quickly reevaluating their thesis, and realizing that ad revenues are BOTTOMING, cost cuts have been DRACONIAN, and financial covenants ARE NOT GOING TO BE BREACHED!
THERE'S NO BASIS TO BE SHORT THESE STOCKS, AT THIS POINT!! Their is a DANGEROUS risk that the Street will be upgrading, and raising earnings estimates (and starting to GIVE estimates again), which is only going to draw more attention to these companies.
They can go up NEARLY as sharply as they came down. The falling knife has ALREADY been caught. The pendulum is swinging. The train is leaving the station. COVER!!!
I agree, shorts should get busy covering because not only does LEE have tremendous medium- and long-term upside, it has a high probability of at least doubling in the short term.
Based on a "quick-and-dirty" technical analysis comparing LEE to general market levels (S&P 500), LEE has a lot of room left to run for short-termers.
For example, the S&P is trading around ranges last seen in Oct/Nov '08. Specifically, during October '08, S&P averaged 969 with a max of 1161 and a min of 849 (all figures based on closing values). Meanwhile, LEE averaged $2.90 with a min of $2.33 and a max of $3.36. So, there's still a lot of room for LEE to move up to keep pace with the general market.
Further, investors are more optimistic about LEE's future prospects right now, as the bottom in this economic cycle seems to have been realized. In October, the bottom was a (scary) unknown.
(I also posted a similar opinion about GCI on that board.)
The shorts have been covering. I saw quite afew last week. But who really cares where it was 5 years AGO! Its never going to see that number again. Unless of course they did a reverse split. I own it but be realistic.