Amarin Corp Plc (AMRN)

[Whalatane]

FFS

When it comes to evaluating short positions, both the days to cover and the percentage of shares shorted (short interest) are important metrics, but they provide different insights.
Days to cover is a measure of the potential duration of a short squeeze, calculated by dividing the current short interest by the average daily trading volume. A higher days to cover ratio indicates it would take longer for short sellers to cover their positions, potentially exacerbating a short squeeze if one were to occur.
On the other hand, the percentage of shares shorted (short interest) represents the overall bearish sentiment and level of short selling activity in a stock. A high short interest percentage suggests that many investors are betting against the stock and expect the price to decline.
While both metrics are valuable, the percentage of shares shorted is generally considered more important for the following reasons:
It directly quantifies the level of short selling activity and bearish sentiment, which can be a leading indicator of potential price movements.
A high short interest percentage increases the risk of a short squeeze, as more short sellers may be forced to cover their positions if the stock price rises unexpectedly.

The days to cover ratio can be skewed by low trading volume, making it less reliable in thinly traded stocks.

Therefore, while days to cover provides insight into the potential duration of a short squeeze, the percentage of shares shorted is a more fundamental metric that directly reflects the overall short selling pressure and bearish sentiment towards a stock.

Investors typically prioritize monitoring the short interest percentage, as it is a better indicator of the potential for a significant price move, either up or down.

Short % As of Apr-30-2024. 4%. Compare that to say RIVN ( Rivian ) which I think has 20% of the stock short .
The peak in the original GME short was over 100% ...the numbers are reported every 2 wks so there was a period where more GME shares were shorted then actually existed .

You'd only short AMRN here if you believed the UK would refuse to approve the share buyback ...which would be unusual since AMRN will still have over $200m cash on hand after the share buy back

We ended the first quarter with a cash position of $308 million, marking a stable cash position over 7 quarters. Importantly, we also secured shareholder approval for our share repurchase program of up to $50 million. Our next step is to secure U.K. High Court approval and the share repurchases are anticipated to begin in the second quarter.

Kiwi