The shorts took the PPS from roughly $2.3 to $1.9/share during the period of 3/26 thru 4/10/08 with an add'l 4.1mm shares short. The short ratio is based on the average daily volume and "this is key" - the short ratio is based on the shorts buying EVERY share sold based on averge daily volume. With all the Majors in need of new mines, LC & LB are at the top of everyones target list plus the retail and institutional demand that will explode with the Permit and Iniation Act approval. The shorts will be lucky to buy 25% - 33% of traded shares which translates to a short ratio of 20 - 30+ depending on who sells. They can try to cover by buying calls, however those will explode as well. Even with the $2.50 calls they lose $.50 - $.70 on 4.1mm or more shares.The institutions(Tradewinds etc) will not be selling along with the majority of long term longs(your truly) in anticipation of the buy out. Shorting a $2 stock is dumb - limited reward and unlimited risk and that, fellow longs, is where these foolish people have put themselves. The short SQUEZZE is not just worth a $1 or so but rather many times that as they try to scramble and compete with the other large buyers for the shares offered. Upon permit announcement I would guess we will see(post halt) a $2-3 gap. I won't be selling and neither most large investors.

This could give new meaning to "Going Green".