You obviously shorted a huge amount of stock before releasing your report. You likely covered at least a quarter of your short after your first report was published and the stock crashed to 8.
Now you see that you were DEFINITELY wrong regarding the cash issue, which means that there is at least $3-$6 worth of value in the company on a liquidation.
Then you publish a report to knock down the price further but the market just ignores it. Meaning your power is starting to dissipate on the stock.
Even on a day where the Nasdaq is down nearly 2%, NQ is up nearly 2%.
You are out of ammunition.
And the company is going to issue a backback next week for the first time since the shares collapsed.
What do you think you would do? I would cover my entire position. Just my two cents.
So that still leaves a company doing $160m of revenue + a boat load of cash.
It really sounds like the whole complaint is around Yidatong now. Even if it were a complete fraud - there is still a huge amount of value in this company.
Sentiment: Strong Buy
Positive news also regrading the anti-dumping laws today for another 5 years. USEC is foolishly rallying on the news while Silex should be.
Khan has already said that once this lockup period is over (after earnings) the company will buy back stock. If they use $25m that should send stock back up. Buybacks are great for creating short squeezes.
There is a reason there are so many open interest call options outstanding for Nov. 16th. 8.5k open for strike of $13. They weren't cheap either. 50 cents each.
Been holding it for a couple of years already at least. Stock only keeps going down while "earnings" and "cash" are simply unbelievable.
Very fishy why they wouldn't buy back shares or pay a dividend.
I wouldn't want that unlimited upside risk though. If company announces a huge buyback and the stock pops to $20+ it could be painful.
$18m revenue runrate
Max 50% margins
Max Profit (excluding opportunity cost/financing) $9m
Payback period of 5 years if everything goes well.
ONP stock is trading at a lower multiple. It would have been a better investment.