I've been writing articles about how Orchids Paper Products (TIS) is insolvent and destined for foreclosure or bankruptcy for months now. As time goes on, the company continues to lose money, borrow more money at higher and higher interest rates. Yesterday, the company disclosed the terms of its new loan amendment suggesting that they won't have to file for bankruptcy before March 1. This news sent shares higher after hours, and if enough day traders drive the price up, there could be another opportunity to short this insolvent company stock.
1. Background
Orchids