I am not going to waste time stating the obvious about its expense and profitability etc. This company’s fate will drag it to the following outcomes in my opinion.
- ) Chapter 11 bankruptcy
- ) Get bought by other company as a whole or may be just a brand will survive
Shorts have got burned by wrong timing. But new shorts on any bounce between 320 – 360 should get good entry.
Since I am not into shorting stocks, I will be looking to buy ( Just as a trade, as you probably already know what I think about company’s future given current situation ) where shorts are likely to cover. Once such successful trade was at 250. Now I will be looking again to buy it between 200 – 250. When 200 gives up, 100 – 150 may be next ! There are ample easy trades between the stated ranges.