Company would still be way under valued at $5.00 - so where's the shorting opportunity? It's getting a little old - you need to wake up and smell the roses once in a while. Company is doing a great job! Still need to cover your previous short?
The company would not be "way undervalued" at $5. That's pure greed talking on your part. It's going to take further debt paydowns, and evidence that revenues can stabilize, to justify moving above $5. It's certainly possibly, but you're talking a year or two away for that. Reversion to the mean is more likely, over the intermediate term.
Who knows. I didn't say it wasn't going to "blow off." But if it does, then there's a short term shorting opportunity. I would imagine if it spiked to $4.50-5.00, a retracement to $3.50 would be in order. The thing about this company is, with so much of it's overall value tied up in the value of the debt, as perceptions change about the overall enterprise value, the common stock could be worth $1.....or $5...depending on what your view of the trajectory of debt paydowns, and maintenance of cash flow is. It's an interesting game. But anyone who hasn't peeled SOME off, at this point (like 25% of an overall position), is imprudent, in my view. I have a token short position remaining, which I never closed out....but closed out 95% of the peak position, fortunately, the last time we dropped to $2.75. I will reshort some at $4.50, and then again at $5, on any heavy volume "squeeze" we may see. Longer term, the company is a "hold" at these prices.