a squeeze can trigger move to 8 plus Paul is a legend and LEG was a stock that was hated and picked on, similar to PWT which was continually kicked in the groin, but now its broken the 200 dma and is ready to march to new 52 week high.
It is half book value . The real money is made when recognizing theres a stuctural shift happening. NG is now basing around 4 and the US recovery although skittish in appearance is real, even if boosted by QE.
The increased capacity of rail cars is helping ease the bottlenecks. Remember LEG was over 7 only a few months aog and was 12 less than 2 yeras ago.
A short position no matter how big the position is can reverse very quickly. This secotr was beatendwon to absurd valuations and if a valuation is absurd in times of a recoery, arbitagers or bigger players will intervene quickly to buy. Look at SGY. It went from 2.80 to 5.60 in less than 2 months.
LEG is similar in composition to PWT and SGY , both oil weighted names of about 70 %. I hold both the stock and along call in this name.