As mentioned earlier, Taronis Technologies trades with a short volume ratio of around 29%. Depending on who you ask, the definition of a stock that is highly shorted can change.
Some experts say that once shorts take up about 15% of shares, the stock is heavy in short interest. Others say that this mark starts at 20%. Nonetheless, with a short volume ratio of 29%, TRNX blows both of these figurative landmarks out of the water.
With such heavy short interest, if something goes right, the stock could explode toward the top, generating gains in multiples as short sellers would race to cover their positions.
So, Why Is The Short Interest So High
I’m not going to sit here and lie to you. There’s a reason that there are so many investors betting that TRNX will fail. Unfortunately, the company has been funded with equity for several years.
As a result of this toxic, dilutive financing, the company found itself stuck between a rock and a hard place. Financially, moves had to be made to keep the company afloat, which is concerning to investors.
If Times Are So Rough, Why Chase A Short Squeeze That May Not Happen?
This is where many may get my statements confused. The truth of the matter is that the tough times are not upon us, they’re behind us. However, the market has a funny way of taking time to catch up, especially as companies pull themselves out of tough situations.
Unfortunately, that seems to be what’s happening here.
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