I wonder whether the shorts are trying to cover even now. IMO, most NLS shorts are a new breed of sucker, with weaker survival skills than any creature on earth. And each one of those suckers is eager to be conned by all the others.
These are people who thought it meant they were *winning* when they zonked the share price down by underwriting an extra 30% of the company's equity themselves -- yet stayed short.
Now of course they're trapped ... but do they know it? Or will they ride it on up, secure in their ignorance?
I've been short this exercise gadget maker since the high 30's. Think about that for a while. So what if they "beat" earnings by a penny. They still sell an exercise gadget by infomercial, and sales are doing an astounding drop.
Everybody claims -- long after the fact -- they "were short" in the 30s, But nobody gives their average selling price.
The loudest "sell! sell!" chorus I've heard has always been at *low* prices. For example, SOMEBODY shorted (net!) an extra 850,000 shares last month around $13.
As for your theory that dominant companies inevitably follow their defeated rivals into insolvency... Are you crazy enough to believe that? or just crazy enough to think the rest of us will believe it?
Well it's time to cover. Stock is still cheap, and they are selling at Amazon and moving to traditional retail like Costco. Do you think Wal Mart/SAM's might be next? That would be a lot more revenue, even if the margins are 2/3 what they get from the infomercials. I'd say we'll see 20-25 range before long as shorts cover heavily and new buyers come into the market.