Although it is tempting to cover after such a nice run down from 110, we must still keep the business case in mind. Has anything changed? No. If you just heard of TZOO today, and reviewed its financials, would you short it at 58?? Absolutely yes. A traders biggest mistake is cutting profits short and letting losers run. Why in the world would shorts cover now??
totally agree with you, i would short all the way down to 30. The only thing i fear is the hedge funds may create instability and force many to cover in order to sell their stake once allowed. I doubt they will just dump and take a loss. Fundamentally even though a growing company competition is rising and it will cut down their profits if not their clicks.