Quote from: Orson Vaughan on May 23, 2006, 02:08:39 PM
I think the Escala Group will be to the bankrupt too, and it is a long term good short for sure, but the only problem on this days is the bad news are deducted in the price and any good news (or not bad) can make the stock rise a lot, because the short of free float is 75.69% (4.859.221 shares short), with a short ratio (days to cover) of 29.3, can to provoke a strong short squeeze.
I am following this scheme and the price movements of Escala Group and in the development of the news or a trading opportunity a will post here.
And here we are one and a half-month later and we have a full-blown short squeeze.
There is news out in Spain and Escala just reported monthly US record auctions: http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20060706005463&newsLang=en
- and the shorts are running for cover.
But the story is even better now because the short position was 6.5 million in June and probably much higher now.
Today was the first day of a very long and painful short squeeze and the stock is already up 44% (wish I knew how to post these fancy charts!)
Can't wait for the trading to start tomorrow. This one will run faster than the shorts can cover.
GLTA
