Just because short activists come out with ideas, and the stocks fall, doesn’t mean the danger is over. This study a few years ago by two prominent securities law professors said as much when it concluded... Although some of our negative activists no doubt take only short-term short interests in their targets, on balance their targets continue to underperform the market long into the future, and extended short positions would continue to be profitable.
"If I’ve learned anything, it’s that just because a stock has fallen by a great amount, doesn’t mean it can’t go even lower."
Reminds me of one of Lynch's lines (paraphrasing): "What's a stock that's fallen 95%? One than fell 90% and then got cut in half."