GAP gapped down strongly on 10/20 after reporting another loss as well as the fact their CEO resigned. The stock has a significant short interest (20%) and I decided to watch it each day to see how far price would go in filling the gap. It showed surprising strength to the upside ever since the initial shock, and today it rose sharply and not only completely filled the gap, but broke through previous resistance. I don't like holding positions for long periods of time, but this is very enticing to me as a longer term swing short. Their 2010 projected earnings are -1.79 and 2011 are -2.39 per share. Their quick ratio of .79 does not bode well for them either. I am assuming the high short interest is keeping this one pumping, but that should burn out soon. Am I missing something here? Are buyers expecting a buyout offer? What kind of forward looking upside could be driving this one? Better yet, how can they stay in business with those kinds of earnings projections?