RE:RE:shortsYou would have to be insane to short RECO at this point, it would be a terrible idea as the upside is huge, if there are any shorts out there it is because there was a smart play involving shorting RECO, in which you shorted the RECO shares in order to raise cash to purchase the RECO warrants. As the warrants had more upside leverage than the shares, it paid to short the shares and use the money to buy the warrants.
With the current share price of $2.40 and warrant price of $1.40, the leverage still exists because you can sell 10,000 shares and get $24,000 and use it to buy 17,000 shares. Then if the shares go up $1 each you lose $10,000 on the short, but make $17,000 on the long position for a net profit on the trade of $7,000. Hence the shorts, however, if the stock goes to $3.00 and stays there for 30 days, the warrants may have to be exercised. In which case, the shorts on the shares will have to be rebought, locking in the profit on the trade.