I had to head out to my sister's place today for a family get together, and when I left the PPS was in and around $3.10 which wasn't bad as far as I was concerned.  Seeing a close of $3.17 now that I'm back home...that's awesome.  I didn't check until I got back in the door, I'm too cheap to pay for data on my phone and I didn't want to bug my sister for her wifi password.

Thursday we got news of the PP, priced at $2.50....and while I shared (and share) everyone's view that its a positive, I also had to allow that the market reaction might not be the same as that held by bulls.  Irrespective of  the fact that the pricing was determined based on a discount to the VWAP back at the end of July and into the first few days of August....it was still a steep discount to where the PPS closed the day before the news came out, $3.12....that's almost a 25% cut to the then "current" price when the news hit. 

Dilution is dilution no matter what.....and by my math the PP represents an increase of more than 5% of the previous ~177.2 million shares.  A corresponding 5%  drop in the PPS would not have been unreasonable in my opinion...instead the PPS went up, and our MC went up even more on a fully diluted basis.  

Hindsight is 20/20 of course, and its easy in retrospect to justify why the market reacted as it did after the fact...but before that confirmation was rendered with the last two days of trading...as I was heading out for a 9am tennis game Thursday....I had to allow that there was a chance the PPS might tumble, perhaps down as far as that $2.50 area the placement was priced at, I was mentally prepared for that eventuality....but I still didn't want to see it happen of course.

The fact that it didn't is YUGE in my book.  Instead of the news sending the price lower, here we are two days of trading after the news and the PPS is higher.  Instead of short sellers perhaps looking to inject some fear it would appear (as noted by ChessPoker) that there may have been some short covering heading into today's closing bell.  When the update comes out on Thursday we'll see where the goal posts have moved to...I strongly  suspect the number will be down again but we shall see.

Going forward shorts now have another window to play games if they wish, 9 days of trading thanks to the holiday Monday.  I'm thinking more and more though that perhaps they've seen some writing on the wall and are more and more willing to cut and run rather than continue fishing.