GPASAS, as mentioned above, if the company stops trading, Shorts loose. Again that's why our pool is sitting on the fence now as we believed anything below 0.20 represented to much risk and volatility. Nothing has changed and what we are seeing are some shorts buying back in (to probably short again - Oxford Street trade). The market hasn't changed, and BLY's operating environment is still the same. They will make a further lose this half and borrow further money to remain open. Their announcement meets their legal requirement of a "reasonable assumption" (re my comments on the death of Henry Walker Eltin 2005), but that fact is that their lenders are in charge and can pull support at possibly anytime. Therefore the announcement is true "today", but no one knows if it'll be like that tomorrow. Some of the talk above regarding refinancing and what shape it may take in comparison with "09" is all wrong, as their is no demand for the product/service that their was today as their was back then. Metals were still on and the investment spend, had not yet peaked. All that's past, so any business model for the future has to be drastically different. Again, BLY has still not shown the market at what level of rig utilisation and sales (without added borrowings) are they profitable. Companies that do not make a profit, don't last. There is some excellent trading here for the brave, but not us at the moment. Good luck brother.
People "toasting" that Shorts are getting burnt, don't understand the trade, as depending on the Short's position, most have made a significant amount on BLY, trading it down, that a loose at the bottom is trivial. There is no recovery here for any longs still holding, sorry. For traders, I admire you.
