3 Signs the Ligand Short Squeeze Is Over

The market seemed to defy logic in late January, when the WallStreetBets subreddit became a platform for organizing retail investors against short-sellers. In the frenzy of actions that followed, a number of companies that seemed long past their primes saw their share prices spike temporarily, despite a lack of any significant improvements to their underlying businesses. And those surges didn't just affect well known companies. Virtually any stock with a high percentage of its shares sold short had the potential to be pumped up with dramatic short-term gains as retail traders attempted to create short squeezes.

Ligand Pharmaceuticals (NASDAQ: LGND) was one of the lesser-known stocks that benefited from all of this. There are several reasons to believe the drama is over for the biopharmaceutical. But that doesn't mean there aren't still reasons to buy the stock.

Image source: Getty Images.

Continue reading

Source Fool.com