$13.20 Price Floor? Plus a perfectly timed short squeeze?
Based on their market cap at closing yesterday of about $759 million, with 57.5 million shares that''s $13.20 without the earnings news and forecast. I imagine they will buy at least another million share then it's $13.43 a share. With a P/E of 10 the conservative price is $13-13.50.
A short squeeze couldn't be more perfectly timed than this week with an earnings release. 1) it's that time of the year to take your losses 2) we're about a week away from the gap down from Sandy Hook which means no one will be selling until they are long term bag holders, for their favorable gains rate. To me this signals low supply of the stock and a high demand. As shorts are taking their losses, savvy investors are waiting to take their gains. As far as timing, long term holders could wait until January 1 before they recognize gains, postponing the tax for another year. Meanwhile the pressure of the stock should drift upwards.
Hmm, I'm thinking about waiting...
Bravo... Very good reasoning...when the squeeze starts it will likely carry the stock beyond it's current "fair value"....a good squeeze often takes on the characteristics of a "feeding frenzy"... Unanswered margin calls... Mandatory buy at market orders executed by margin clerks who are worried about Reg T violations. It is often a blood bath for short sellers. Valuations go out the window at that point. Merry Christmas to all longs. It will be a nice present under the tree.