When to expect a short squeezeHere is my take:
A number of hedge funds and other large investors paired their investment: Long ACI and short ALA.
The vote should be held in December but I think the closing is projected for June.
If year end earnings are strong and ALA starts to rise those hedge funds may want to begin selling their shares of ACI as soon as they are sure of no higher offers. Thi sreturns cash to them to close out the short shares of ALA. Put options could be sold against the short ALA shares to try to hedge against losses from a rising ALA but if it is too strong or is the hedge funds want to unwind to move on to a brand new deal they will unwind and mov eon. The unwinding ensures there will be significant buying of ALA so downside now is strictly limited unless the company really screws up. We hav ebeen seeing the opposite so between now and June there shoudl be a nice bump to shares. In this environment fo rthe small retail investor I would not sell unless there is a $2 bump even short term. But if one sees a short perios of weakness I do not think it will last long and could present one further buying opportunity before the stock says goodby to teh 20 - 21 range. All of course IMO.