iBio (IBIO) Stock Is Gearing Up For A Short Squeeze

iBio IBIO Stock News

iBio Inc (NYSEAMERICAN: IBIO) is falling in the market yet again this morning, a trend that we’ve seen for several trading sessions at this point. If you follow my work, you know that on a long-term level, I’m very bullish IBIO. Click here to read why

While I could talk about the long-term opportunity that iBio represents until my face turns blue, there’s a huge short term opportunity that I’ll focus on today. My friends, there’s a short squeeze ahead!

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IBIO Will Squeeze Shorts Very Soon

If you’ve had an investment in iBio over the past week or so, you’ve been cringing. The stock has fallen from over $7 per share to under $5 per share, and you boots may be close to shaking off. Well, hold on tight because you’ve got a wild ride ahead. 

In my view, IBIO stock is gearing up for a short squeeze. 

Since reaching highs over $7 per share about a week ago, short interest has been building up. In fact, about 33% of the volume as we speak is short volume. In most cases, this indicates that it’s time to run before you’re caught holding the bag. However, in this case, it likely means that there’s a short squeeze on the horizon. 

Let’s not forget, IBIO is one of the key players in the race to develop a vaccine for the coronavirus that causes COVID-19. The company has several key competitive advantages, including a strong partner, ownership of the FastPharming facility, and multiple candidates under development. 

However, the company hasn’t issued any news recently. This has led to concerns among investors, and has likely resultedin the 33% short volume that we’re seeing on the stock today. 

Nonetheless, when news is released, the stock is likely to rocket! Think about it, what we have is a COVID-19 stock with incredible competitive advantages that’s dealing with heavy short interest. There are two things to keep in mind here:

  • Shorts Lose Money On Gains – When a stock that has heavy short interest moves up in value, short sellers start to lose money. This leads to a flood of short sellers purchasing shares to cover their positions and cut their losses. That’s what we know as a short squeeze. All IBIO needs is a slight uptick in value to trigger one of these events and experience tremendous upward movement. 
  • News Is Likely Ahead – While short interest is heavy, the shorts are playing with fire here. Considering the fact that it’s been a while since we got a coronavirus update from IBIO, there’s a strong chance that news is around the corner. With everyone’s eyeballs on the coronavirus story, this news has the potential to lead to gains which will trigger a short squeeze. 

There’s no other way to slice it my friends. If there ever was a stock that’s gearing up for a short squeeze, IBIO is it!

Final Thoughts

In my view, IBIO is a strong long-term play. However, beyond the long-term benefits of owning this stock, there’s a huge short-term move on the horizons. Those that get in before the short squeeze will have massive potential for gains. So, keep a close eye on IBIO stock. 

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