In April this stock climbed to multi year highs in anticipation that a significant announcement would be made at the EC. It did not happen but the share price went from $1.35 to $2.87 in anticipation that it could happen. Over that time period 9 million warrants were exercised and it did not slow down the run up that took place.
The difference this time around is the market is expecting to hear news about deals that are being signed by Ajit. Will warrants be exercised that will hit the market? I am told not to expect an overhang from these warrants but regardless with the expectation of significant news I doubt they will even be noticed. I think the share price will mimic the run up that happened in April with the exception that it may continue supported by news and the expectation that deals will be announced.
The other part of the equation that will probably be very different this time is this. In April during that big run up to $2.87 the shorts increase from 89k to 1.7 million. The short position in the last report was 2 million and right now buy in to cover failed trades from uncovered shorts are happening regularly. So this time around there will potentially be a short squeeze helping to fuel upward momentum.
