Observation regarding TMDX

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I’m not making any predictions based on this, but just observing that the short interest on TMDX is quite large - about 20% of the float. Looking at short history, there has been over 5M shares short for over a year. That is a lot of trapped shorts because the stock has gone up from about $45 to $170 in that time.

2 possible scenarios. Shorts are sticking with it because they expect a big dump at some point. Certainly possible. They could be praying for some type of bad news to drive the stock down so they can cover.

Or, if the company keeps putting up 100% YoY growth for another couple of quarters, and if the overall market keeps going up, this could become a big short squeeze.

I would not make investment decisions on either of these guesses. I’m just noting this here to observe what happens. I currently have the same shares I have been holding for a while and I’m planning to keep them for now.

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Update on this topic - I’m going to track and update this periodically (hopefully the moderators will allow it). As stated in my original post, I’m not making investing decisions based on this - just observing for educational purposes.

Shares short has come down slightly, but is still pretty high:

8/15 - 6.06MM shares short
8/31 - 5.87MM shares short
9/15 - 5.5MM shares short - about 16.5% of outstanding shares (for reference, most companies are around 1% to 4% - so the short interest in TMDX continues to be rather large.)

With the inclusion in the S&P 600 Small Cap, many funds will be forced to buy TMDX.

There have been recent analyst upgrades for TMDX with $200 price targets.

The overall stock market is trending higher.

At some point, if TMDX stock keeps rising, all of these shorts are going to have to cover which could result in a large squeeze.

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