RE:RE:RE:NEXT WEEK
If there has been a big increase in short positions they will have to cover eventually and as the story turns positive this will add to momentum and buying pressure, which will increase the pressure to close out their position. My thought is that the larger the short position the more the price has been held in check due to short pressure. Soon after earnings the blackout on insider buying will expire. So you will see a decent earnings, followed by insider purchases. They would have to be CRAZY to continue to short into that. I don't think it even has to be a short squeeze per say. Simply some astute fund managers and retail inveators will notice the value and start moving in. The shorts could of course double down, but I think it will be harder for them to maintain a negative cloud over this after the earnings release and as the narrative changes. Price wise it has already broken correlation with VRX. Unlike VRX there isn't really any short narrative here except "look at the debt level". Whish is done without looking at the value the business they just added gives them. Right now this stock is priced as if EVERYTHING will be going not just wrong, but terribly wrong, but even if that were the case they wouldprobably be acquired at a premium to the current price.