I agree with you that timing the buying and selling of these small biotechs is always tricky.
I think there is limited downside from here, plus the company has $4.35 per share in cash.
So buyers are "buying" a lot of cash and paying about a $1.00 for the pipeline and current product sales. That implies the company is significantly undervalued.
While the short interest will push down the stock in the short term, if the company executes as we expect, there should be a massive short squeeze and short covering, which will drive up the stock price at an accelerated rate. Usually, if a company performs well, increases revenues, brings new products to market, the stock will perform well.
So it might squeeze next week, or not...., but Egalet has been preparing to commercialize Arymo ER for some six quarters and has an in-house salesforce that's poised to hit the ground running; a launch is imminent.
We will see! :)
