With the price of the stock trending up since about mid-August (a series of higher highs followed by higher lows, with declining daily volumes), once the price tops $1, the company could put in an order for 50-86m shares @ $1, or $1.01. This would easily guarantee the shares stay above $1 for 30 days, as required by the NYSE, without accumulating more than a relatively few shares, if any. My guess is that such a huge order, up to ALL the shares issued, would provide a sudden and significant move up as the shorts scramble to cover and the Institutions see limited down-side risk.
JMHO, of course.
With 86M issued shares and 21.2M shares sold short, the effective float is 86 + 21.2 = 107M shares.
With 63.5M shares held by institutions, the remaining 43.5M shares are held by individual investors. For every share sold short, a share is bought long.
Normally short sellers hedge their short positions with balancing long positions. When the long positions go down significantly, as occurs in a bear market, these investors can be expected to take their profits on their short positions to protect their long positions, rather than sell their long positions at a loss.
With PGN trading below $1, it may be assumed that significant profits have been made in the shorted PGN positions, hence the bullish case for PGN in a bear market.
Given the growth in the economy, I don't expect a bear market any time soon. But it is nice to be confident that you have some insurance.
I'm surprised that the price has held up as well as it has today, given the SA article by a short seller posted early this morning. This may indicate that the shorts crying "bear", like the boy crying "wolf", are no longer being listened to.
JMHO, of course