Avid Bioservices Inc (CDMO)

[Protector]

CDMO Short Interest vs Liquidity

On 06/15/2021 the short interest for CDMO is 3,904,187 shares.
source NASDAQ

According to the liquidity estimation (shares in daily circulation) there would be about 2,206,383 shares available for daily action (all solid shelfs excluded).

Although the estimation is probably not exact (it contains a guess as to the number of shares that will go into the Russel 3000 basket), it will certainly not 2 Million shares of.

So, 3,904,187 (non deliveries in overnight lending) - 2,206,383 = 1,697,804 shares more short then in circulation.

Would there be a SUDDEN acquisition announcement, then the short positions will want to close ASAP and that can only be done with buying shares on the open market. The same goes for all CALL OPTIONS that are not covered by the option seller who will have to purchase CDMO shares if exercised with delivery.

So we are entering waters where there are artificially (due to shorts) more shares in circulation then that there are outstanding shares. That also means the lenders may be forced to give up shares to restore the balance.