Reality Check re: Shorts
posted on
Mar 26, 2005 08:05AM
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