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Message: Reality Check re: Shorts

Reality Check re: Shorts

posted on Mar 26, 2005 08:05AM
Okay, we`ve been round and round on the short selling issue. Result is maybe or maybe not on whether EDIG is being sold short, either nakedly or ``clothed`` (off-shore either way). Presumably this action, if being carried out, has been going on for a long, long time. We`re still alive, right? PPS may be depressed from a forward-looking perspective, but is overblown from the fundamentals perspective (any argument there?). So what will be the result of such shorting action if it is occurring? So far, I haven`t seen it (other than the weird PPS stability recently, and then a lower PPS, but there again, are EDIG`s financial fundamentals and lack of news).

So what happens if EDIG announces a really big contract with anyone for anything, but involving big bucks and big potential for more? Does the short situation hurt us or help us, re: PPS appreciation? Seems to me that ``non-naked`` shorts would be compelled to cover, further bolstering the PPS. But those ugly naked shorts; will they be compelled to cover? Or will they just sit on their non-existent shares since it seems they can get away with not filing anything in the current state? Will it matter?

I`m very interested in the opinions of others on these points. I mean, the spector of short selling of EDIG has been thrown in our faces, perhaps causing alarm. But what is the impact if this is the case?

I have a rough time buying a ``we`re doomed`` scenario, because if that were the potential outcome, after presumeably years of such behavior, we would already been shorted into oblivion. But we`re still here....

So, all summed up, is this much ado about nothing (as far as impact), a real threat, or something that could actually benefit us should EDIG find the Holy Grael?

SGE

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