Sunesis Pharmaceuticals (SNSS) Stock Squeezes Shorts Ahead Of Earnings

Sunesis Pharmaceuticals SNSS Stock News

Sunesis Pharmaceuticals, Inc. (NASDAQ: SNSS) is running for the top in the market this morning, trading on gains of more than 15% in the premarket. However, if you’re looking for any press releases or SEC filings, you’re not going to find any. Instead, it looks as though bulls are squeezing the shorts ahead of what’s likely to be a strong earnings report. Here’s what’s going on:

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SNSS Stock Flies Ahead Of Earnings

At the moment, it is expected that Sunesis Pharmaceuticals will release its earnings today. Since the results didn’t come so far this morning, there’s a strong indication that the report will be released after the close, giving bulls time to squeeze the shorts.

Here’s a quick preview of what to expect:

  • Revenue – Analysts are expecting revenue to come in around $190,000.
  • Earnings – In terms of EPS, the company is expected to produce a loss of $0.06. If this happens, it would prove to be an increase of 33.33% year over year from the loss of $0.09 reported in the same quarter last year.

Those are the expectations, but if this report is anything like previous reports, these numbers are a bit light. In fact, SNSS stock has beat earnings estimates consistently over the past four quarters. Considering this trend, there’s no reason to expect that the company will fail to beat expectations on this report.

A Perfect Storm Brewing

For some time, SNSS stock saw an increase in short interest. Most recently, short volume has been sitting around 28%. Keep in mind, anything over 10% is considered to be pretty high.

As such, as the stock starts to head up, shorts will be forced to cover their positions or watch as their money fades away. Covering positions involves purchasing shares, which leads to a short squeeze and could send Sunesis Pharmaceuticals flying.

Let’s Recap

What we have here is a coming earnings release that’s likely to be positive from a company whose stock is trading with high short interest. What we’ll have as we head into earnings and likely following may be a short squeeze, sending SNSS stock soaring!

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