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Message: What happens when...

What happens when...

posted on Mar 25, 2005 08:37AM
a WENCOR, for example, knowing what it knows about the growth in IFE wants to further leverage this new business opportunity by staking out a claim in the technology it just bought via APS and buys EDIG as another vehicle to benefit from doing business with Legacy carriers ???

What happens then to those naked shorts ?

If I was Atul, I would have some serious conversations with companies like APS/Wencor and that Asian OEM about owning a piece of EDIG...

``Investors that know that the company has the goods can sit back and buy shares at a tiny fraction of book value and thereby average down their previous purchases. Since the size of the naked short position is of a cumulative nature, increasing with the age of the battle, a point is reached wherein the naked short sellers cannot afford to cover this massive naked short position without driving the share price to the moon.

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