It's been quite a volatile ride today, but one pharmaceutical stock has made 5 years' worth of returns in a couple hours. It's what happens when there's a huge imbalance in demand vs. supply on a stock and it breaks out to new highs. Shorts are scrambling today on Biofrontera (BRFI), a small biopharma company that develops and provides dermatological products for the treatment of skin diseases. BFRI broke out earlier today and now shorts are left with a big decision. Short more or take losses and move on? Currently, BFRI is the #1 stock on our Short Squeeze ChartList (SSCL) that we provide to our members at EarningsBeats.com, and has a short percentage of float of more than 84%, the highest reading I've seen on any stock since GameStop (GME) reached a ridiculous 140%. Here's what's happening today:
BFRI could be absolutely ANYWHERE at today's close. It could be $30 tomorrow or it might fail later today and be cut in half by tomorrow. Short squeezes, or failures, are not at all rational. So if you decide to trade BFRI, just beware of the significant risk associated with it.
Tomorrow morning, I'll feature the second highest short position on our Short Squeeze ChartList, providing annotations and key levels where short sellers might begin to feel a pinch and start to cover shares (buy) in droves, in our EB Digest newsletter. Subscription is free with no credit card required and you may unsubscribe at any time. If you're interested in subscribing and receiving tomorrow's short squeeze stock, CLICK HERE to enter your name and email address.