So the downward momentum has finally broken on this stock.

After the earnings announcement, the overblown negativity will begin to dry up, and the short sellers will start a reflexive process of covering, raising the price, and forcing more short sellers to cover. This should lift the stock price significantly.

I have begun to purchase shares, but I have only purchased a small amount. I am expecting a pullback, because the intial enthusiasm is bound to moderate before the upward momentum resumes. On the other hand, I do not want to miss out on any upside that occurs from the early short covers.

Disclosure: I am long GMCR.