Attention : Nvax bagholder reporting in. Every once in a while, I check my worst performers for short interest, to see if there is light at the end of the tunnel. This time, I checked Nvax (1000 shares at 9.5 average). And lo and behold, I see the holy trifecta of short squeeze setups:
1. 29.95% SI (anything over 20 is considered good, 30% is great)
2. 10.07 days to cover (3-5 being considered good)
3. 50 million shares currently shorted with cost to borrow rising, and regular options activity.
Now, what could kill the squeeze? ATM offering will do it, but Nvax recent partnerships and cash on hand make it unlikely. They have been bleeding for the last few months so one could argue the bear case being already priced in.
All Nvax needs now is a catalyst. Beat the estimates and we will see 12-14. Beat the estimates and the gap holds ... this thing doubles or triples.
Just a heads up, so if it blows up I can say I was the first to call it.