Apr. 28 at 7:06 PM
$OMER Part I
Any short squeeze that may be coming will be muted compared to what many expect. Why? Because only about half of the 17M shares held short will participate in a squeeze.
Much talk on OMER social media about the big squeeze coming especially when you consider that 17M shares are held short representing about 24% of the shares outstanding. But it is VERY LIKELY, that as much as half of the shares held short are held by the debt holders of the
$70M, 11.1M share, 2029 convertible debt and as such, their short positions are considered “mechanical hedges” vs. the traditional “directional” shorts that are betting on a drop in share price. These two different types of “shorts” behave differently and have differing impact on the underlying SP. In fact the shares held short by the debt holders will have VERY LITTLE input to a short squeeze, leaving only the “directional shorts” for the potential to squeeze, about half the 17M short shares
In my reply I explain why
