I pretty much agree. However, I would add that the stock is still selling at or below cash per share and that is too low. Secondly, if you look at it as some of the financial media do, it is a huge thing to go from a loss to a profit. We all know that there some unusual items included in recent periods and there is no logic in how Value Line and Investors Business Daily account for these items. Finally, it looks like the company will be more profitable in the future and this should put some pressure on the "shorts" whose open positions totaled 148,000 shares at last report on Yahoo. My guess is that the stock goes up from here.
So far, so good. At least for today my prediction was correct but it must be acknowledged that the market overall had a good day.
I am still amazed that people have the nerve to be short a stock that has more cash per share than the market price.
Perhaps they sold short based on stock charts and momentum theory. That is, sell what is going down and hope it goes down some more. Well, the corollary is that you buy what is going up. The shorts may want to check their charts. It appears to me that the stock has made a bottom and is headed up. If that is true, they can cover now or buy later at higher prices. Let the stampede begin!