LGND - Forget Gamestop! This Highly Shorted Stock Is a Strong Buy Now
It's not often a textbook short squeeze creates a classic bubble. A stock with significant bets against it starts rising, forcing those who are short to "cover," or buy shares themselves. The rising price attracts more and more attention until a frenzy of buyers bid the stock up to irrational levels, focusing on how high the price might climb instead of what it might be worth. Over the past few weeks, shares of Gamestop -- albeit for a moment -- seemed to rewrite the rules on Wall Street. As that story lost steam, another heavily shorted stock, Ligand Pharmaceuticals (NASDAQ: LGND) , might just be the next to rocket higher.
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Ligand has an unusual model for the pharmaceutical industry. It holds patents on technology that other drug companies use to make their products. Some of the largest pharmaceutical companies in the world use its three platforms, OmniAb, a modified cyclodextrin called Captisol, and Pfenex, to develop their own treatments across virtually all disease categories. Perhaps the uniqueness is the reason 62% of outstanding shares, and 108% of the publicly available shares, are currently sold short.
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Forget Gamestop! This Highly Shorted Stock Is a Strong Buy Now