I always assumed that the institutions wanted the tender as a method to liquidate their awful gun stocks. Management did not meet their initial price demand, but I am thinking that management must have had some serious discussions before raising the offer to $11.
I am following what you say. Problem is, if all the shorts cover and run it up to $18, its just cannon fodder for another short attack when some Jack runs into a Walmart and bows off his glock.
That amoung other reasons is why I say taking 6.8 million shares out of the float is not enough. its such a marginal effect and blows the company profits. The company should be focusing on the shorts biggest argument, and that argument is that the bubble will POP! So the company should counter that logical and rational fear by finding a way to bolster and build sales and profits for the long run. YES - MAINTAIN $100,000,000 a year in profits.
Instead, they are blowing cash, incurring debt, and in two years what? 61,000,000 shares outstanding?
If the company doesn't have an end game, this will end badly.