CLDA about to break out. Fidelity news is making shorts cover quietly 25-Feb-10 08:13 pm
If you notice on the worst down days, CLDA has been up even today when market was down 160 points.
Fidelity now owns about 10% - this is REALLY bad news for shorts - there is WAY too many shares short for a stock that only trades 84,121 shares on an avg day.
Now that Fidelity is buying and with NDA coming soon, this 1.7 million shares short 13.37% of the float, 13 days to cover is a HUGE problem for those short.
Why? Because there are no real shares for sale. Not now. Once approved its clear RJ Kirk is gonna try to get $40 to $50 a share for this company and big pharma will pay it. Fidelity nows it. Kirk has a GREAT track record.
Now you hace 1.7 million short shares - with 84 k shares traded a day. Trust me this will not end well for the shorts - not with Fidelity in this now.
They are starting to sweat. They use down days to scoop up shares quietly - so its up nicely on huge down days but not up really big like it would if they bought the same shares on an up mkt day. But the smart ones are buying now but SOON there is gonna be a squeeze. The NDA acceptance is at most 30 days away, probably much sooner. Doesn't give shorts much time. Not now. Not with Fidelity owning 10% and Kirk ready to negotiate.
SOON - there will be a short squeeze of epic proportions with one short hopping in front of the other trying to cover - likely with Fidelity and other hedgies who follow their lead throwing a little fuel on the fire.
Buy this stock. Now. Don't nickel or dime it. Its gonna be in the 20s soon and could make a run to the high 20s after NDA if healthcare stocks come back in favor. I think that will happen.
Clinical Data Inc. $ 18.05
CLDA 0.12
Short Interest (Shares Short) 1,671,500
Days To Cover (Short Interest Ratio) 12.9
Short Percent of Float 13.37 %
Short Interest - Prior 1,660,200
Short % Increase / Decrease 0.68 %
Short Squeeze Ranking™ 185
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