Aug. 18 at 1:49 PM
$SLS the dilution machine is out of fuel, and that changes the game for the shorts.
For years, shorts covered into a steady drip of cheap new shares — warrant exercises and the ATM. That supply is nearly gone: the warrant overhang has collapsed from 58.5M to under 10M, and the
$150M ATM sits completely untouched.
So how do ~55M short shares get covered now? By buying in the open market — into a float where institutions hold ~45% and keep buying. That buying pushes price up, not down.
The tool the shorts leaned on is gone. The drift into the 80th event has room to run.
A multi-year move higher for
$XBI and
$IBB could really get things moving as the entire biotech M&A space heats up.
