iBio (IBIO) Stock: The Case For A Short Squeeze Is Building!

iBio IBIO Stock News

iBio Inc (NYSEAMERICAN: IBIO) is a hot topic as of late, and for good reason. The company trades with a market cap that sets it in the penny stock category, but the work it’s doing is as impressive as some blue chips in the vaccine space.

Nonetheless, there’s a strong case for the argument that a short squeeze is around the corner. Of course, if that is the case, it means that playing your cards right could result in tremendous gains. Here’s what’s going on:

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IBIO Gears Up For A Short Squeeze

There are three things that need to happen for a short squeeze to take place, and iBio has checked two of the three off of the list:

  1. Heavy Short Interest – IBIO has seen quite a bit of growth in short interest on the stock over the past couple of weeks. At the moment, it is trading with a short volume ratio of 36%. That number is overwhelmingly high. In fact, anything over 10% is considered to be heavy short interest.
  2. Popularity – While not all short squeezes take place on popular stocks, the vast majority of them do. The fact of the matter is that for a tremendous run like a short squeeze to take place, people have to be interested in the stock. With the company’s work in the COVID-19 space, the popularity box is surely checked.
  3. A Catalyst – This is the only thing we’re waiting on. The fact of the matter is that in order for a short squeeze to take place, a catalyst that sends the stock upward needs to happen. Once the catalyst happens and upward movement begins, short sellers race to exit their positions, which means buy more shares. This sends volume through the roof and leads to tremendous price appreciation.

Considering the level of short interest and popularity surrounding IBIO, I couldn’t imagine a scenario under which we wouldn’t see a short squeeze soon.

IBIO Beyond A Short Squeeze

Even beyond the idea of a short squeeze, IBIO represents a tremendously strong play in the COVID-19 space. There are a few reasons why the stock is one to watch closely, even without a short squeeze on the horizon:

  • Multiple Vaccine Candidates Under Development – iBio’s claim to fame is its work to develop a COVID-19 vaccine. Currently, the company has two vaccine development programs surrounding its goal of bringing one to market. Of course, two chances to succeed is better than one. With two vaccine candidates, there’s a stronger chance that the company will bring at least one of them to market.
  • The FastPharming Facility – In 2010, IBIO announced the completion of a facility known as the FastPharming Facility. The facility, built using funding from the government, was designed to produce vaccines and other biologic agents at an increadibly fast pace in the midst of a pandemic situation. The ownership of the FastPharming Facility positions IBIO well in the face of the COVID-19 pandemic. Even if neither one of the company’s candidates are taken to market, the FastPharming Facility makes the company a perfect manufacturing partner for any plant-based vaccine.
  • CC Pharming Partnership – Finally, iBio is partnered with a Chinese vaccine development company known as CC Pharming. Considering the fact that CC Pharming has already developed a vaccine for a sister strain of the coronavirus, this partnership is a key competitive advantage.

The Bottom Line

The bottom line here is simple. IBIO is a strong play, no matter if you’re looking at the short or long term. On the short term stage, all it would take is a single positive catalyst to send this stock soaring in a short squeeze.

Beyond the short squeeze, the company offers the potential to profit from either the development of a vaccine, manufacturing another company’s vaccine at the FastPharming Facility, or a mix of the two.

Considering the positive outlook for both the short and long term IBIO should be on your watchlist.

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