Seneca Biopharma (SNCA) Stock Squeezes Shorts

Seneca Biopharma SNCA Stock News

Seneca Biopharma Inc (NASDAQ: SNCA) is flying in the market this morning, causing short sellers to run for cover! While the company did issue an SEC filing today, it was more of a regurgitation of news that was issued last week. Nonetheless, it has triggered a short squeeze, sending the stock up well over 100% so far today. Here’s what’s happening:

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SNCA Stock Jumps As Shorts Run For Cover

As mentioned above, there was a new filing by Seneca Biopharma published by the SEC this morning. In the filing, the company announced that over the past week, it has presented at both, the Sachs Associates 3rd Annual Neuroscience Innovation Form and the Biotech Showcase.

SNCA said that both events were held in San Francisco, California. Moreover, the company said that it is in the process of conducting one-on-one meetings with potential joint venture and strategic partners.

Much of this news was issued in a press release a week ago. Nonetheless, there is one big statement that the company made in the SEC filing that started the excitement. Ultimately, the conferences seem to have led to potential opportunities with joint venture and other strategic partners.

Investors are looking forward to seeing the results of these conversations.

Why Is The Stock Seeing Such Dramatic Gains

At first glance, the news is good, but it isn’t double your value good. So, what’s the deal? Why is the stock seeing such dramatic gains?

Well, SNCA is a pretty heavily shorted stock. So, when anything positive is released, it has the potential to trigger a short squeeze.

Ultimately, the SEC filing caused a bit of excitement about a potential coming deal with a joint venture or other strategic partner, causing the stock to find its way upward. From there, those that sold the stock short started losing money quickly.

In general, when this happens, short sellers race to buy shares in an attempt to cover their positions and cut the bleeding. This causes both price and volume to climb dramatically in an event known as the short squeeze. That’s exactly what we’re seeing from SNCA right now!

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