The short interest is hovering at 3,000,000 shares or ~ 15% of the float now. Stock is at 5.50 a share. The short interest was 12,000,000 shares or 75% of the float back when the stock was at 16 a share. Although I can see a possible share price increase as the supply/demand shifts, the possibility of a dramatic squeeze seems unlikely to me.
Having said that, the combination of heavy buying from overall market sentiment coupled with some share buyback (which has not ever been announced, questioned by analyst or discussed in a open forum by the company), perhaps could squeeze some shorts out en mass.
I however, believe the filing for the restructuring of finances (I.e. the share buyback possibility), was facilitated by the company as they had knowledge that the company was going to have a "reset" financially and to make available another option in case the share price dropped. I have no clue if they would entertain a buyback now as the stock rises, and I would suspect they will be coming profitable sooner then later.
Of course I am long here, not a trader... So play your cards as you see fit in your financial investment strategy.
So you are in favor of them acquiring long term debt? They have 50 million in working capital. To me this is an indication that they are entertaining a buy out offer(s). If they start buying back shares (with a very few holding over a third of the company), a buyback would indicate going private. I don't see any advantage for Alden to take this company private as he accumulated great wealth at IPO? IMO. They are setting up to get get the company back to growth / profitability and sell it. It's everyone who is involved (Hoby, Wescoat, Alden, Kearl etc. specialty). IMO. I would expect the company sold beginning of next year at IPO price + a premium. Shares should rise into this period once the next Q is announced and forward guidance. IMO.
I may add that traditionally short squeezes happen in companies with a SI number of 20% + of the float. SKUL falls at 17% (as of 4/30 report) my gut is that this number will decrease next report. Of course market factors such as days to cover, availability of shares to cover, market volume, shares outstanding etc. play into this. But this "squeeze" if it happens, will be a short term trade opportunity. IMO