Heavily shorted stocks often rally - shorters are in my experience no better at picking direction then the longs.
Yeah maybe. Although total shorts about 7.5 million in BAL (Monday) with over 8 million traded today, I don't see the shorters (bless their hearts) being trapped in an illiquid stock.
As someone else noted (unless another bid comes in) the shorters know the maximum price of the stock, with the possibility of a BAL FIRB failure making their dream come true. This would be a rare position for them.
BAL Price at posting:
$13.03 Sentiment: Sell Disclosure: Held
