$LK I don't see why anyone would think this is a good time to take a short position on this or keep one open given the risk reward at the current SP. This is a case of fraud and not a case of bankruptcy. The company is still generating revenue and still owns a ton of assets. Even if it were delisted and sent to the pinks, it would still have value and trade. The only real danger I see for taking a long position in this is the huge number of lawsuits that are already lined up and growing by the day by investors & tutes that lost tons of money due to the fraud. This could cause the company to delist itself from the NYSE, tell the SEC to F OFF and just trade on the Chinese exchange. Or they could just file chapter 7 BK and rebrand itself. However, that will be a long drawn out process that will take years to settle.
  • 2