Jun. 26 at 3:31 PM
$CRMT
Massive "Short Squeeze" Fuel
Because the headline news surrounding subprime auto delinquencies has been universally terrible, CRMT has been aggressively targeted by short sellers.
The Mechanics: If the Special Committee successfully announces a permanent recapitalization package or an unexpected white-knight investor step-in before September, short sellers will be forced to rush to the exits to cover their positions. Because the stock's market cap has shriveled to micro-cap levels (~
$25 million), any sudden flood of buying volume to cover shorts would trigger an immense, parabolic short squeeze.