While no news has been released by the company this morning, Sellas Life Sciences Group Inc (NASDAQ: SLS) is flying in the pre-market hours this morning. We did some digging and found no press releases nor SEC filings that might be the reason for the gains. Nonetheless, we believe that we know why the stock is climbing. Today, we’ll talk about:
- Why SLS is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
SLS Is Climbing: Here’s Why
As mentioned above, Sellas Life Sciences is having a strong start to the trading session this morning, but the company hasn’t released any news. In fact, the most recent news that was released came 10 calendar days ago, when the company announced that data from a Phase 2 trial of nelipepimut-S +/- trastuzumab was presented at the European Society for Medical Oncology 2018 Annual Meeting.
Nonetheless, the gains are here for a reason. Looking at the short interest on the stock, we can see that it is rather high, sitting at over 10% according to ShortSqueeze.com. While short interest is rather high, it has been experiencing declines. In fact, as of late, short interest has fallen by 4%.
This ultimately shows that investors are starting to have more faith in SLS. This is also pretty bad news for those that are still shorts. After all, investor faith and declining short interest means that the stock has potential to climb, and gains mean losses for shorts.
With the short interest slowly tappering off, it looks like we’ve finally broke into a short squeeze. As SLS heads up, those who are short are losing money and starting to abandon their positions in what is becoming a short squeeze. While the stock is up substantially, short squeezes have the potential to lead to tremendous gains. So, this run may be far from over.
What We’re Seeing From The Stock
Short squeezes are some of my favorite moves because there is no telling how high they will push a stock. In the case of Sellas Life Sciences, I believe that we are in the beginning of the squeeze and the stock has plenty of room to run from here. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:05), SLS is trading at $1.47 per share after a gain of $0.25 per share or 20.49% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SLS. In particular, we’re interested in following the stock to see just how high this short squeeze pushes the needle. We’re also interested in following the company’s continued work surrounding their fight against cancer and their goal of bringing new treatments to patients within the comnmunity. Nonetheless, we’ll keep a close eye on the news and continue to bring it to you as it breaks!
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