SonicBlue: A good stock to short

SonicBlue, makers of Rio and Diamond products and ReplayTV, are going through some turmoil at the moment. Some time ago the board voted to have the company lend them large amounts of money to go and buy other companies’ stock with, for their personal gain. They then voted to make the loans “non-recourse”, meaning that if they failed to pay back the money, the company would be liable, not them.