rebels1

Yes, however since then, the short position has steadily increased to over 9 million shares and the SP has hovered around $3.06. The meltdown is the cause for the drop, but one still wonders why the SP hasn't bounced back when compared to other company's.

CLL short position never increased to over 9M .As per last reporting period Jan31/2008 short position was 8,070,276.We will see soon what the February will bring. Major increase can be observed in Q3 and Q4/2007 ( royalties issue and general market condition) .Not in the Q2 when the convertible debenture were issue.

If you read the study you are referring to you would conclude that majority hedging activity takes place just before and short time after the issue is closed. Most gains are realised in first 20 trading days. Hedge funds do not have long term commitments to their positions. But what do I know? Not much.