Avid Bioservices Inc (CDMO)

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I don't think PPHM is on anyone's hard to borrow list right now, but interest risk would actually increase with short interest. I'm familiar with the strategy of short arbitrage, where one shorts against preferred to profit from mispricing, but I can't find anything published on the math for shorting against preferred to "lock in" a profit.

Generally the borrow cost on stocks is so small it is covered by the interest on the cash received from the short sell. Those cases where you hear about 10-20% borrow costs are really the exception.

So shorting against a preferred (or more commonly a convertable bond) is a standard practice. It allows one to separate the interest play from the equity risk.

When PPHMP was sold it was not very reasonable to short the common against it (as the price delta off the excise was too large). But with the bump over $3 the picture changed.

I would certainly assume some of the new short was the PPHMP ownership.

No comment on this being some grand plan though.