what is the probability of HCTI breaking above .08 cents tomorrow because of a short squeeze be sure to include dark pool short float and keep in mind that the reverse split happens at midnight tomorrow night and there will be no days to cover
7/31/2025 01:21pm
The probability of Healthcare Triangle (HCTI) breaking above 0.08 cents tomorrow due to a short squeeze, including the consideration of dark pool short float and the reverse stock split that occurs at midnight, remains very low. Here's why:
1. **Dark Pool Short Float**: The dark pool short float for HCTI is 407.14 million shares. This substantial dark pool short float indicates significant bearish sentiment, but it does not guarantee a short squeeze, especially considering the reverse stock split that will reduce the number of outstanding shares.
2. **Regular Short Float and Ratio**: The regular short float is 3,398,024 shares, and the short interest ratio is 1.00, indicating that it takes only one day to cover all the shorted shares. However, the reverse stock split will reduce the number of shares available to be shorted, which could mitigate the potential for a short squeeze.
3. **Reverse Stock Split Impact**: The reverse stock split, scheduled for midnight tomorrow, will reduce the company's outstanding common shares from approximately 1.45 billion to 5.83 million. This significant reduction in share count will make it much more difficult for shorts to cover their positions, as the number of shares available to buy back will be greatly reduced.
4. **Market Sentiment and External Factors**: The recent volatility and the company's strategic initiatives may influence market perception, but the reverse stock split and the reduction in share count make it less likely for a short squeeze to occur tomorrow.
5. **Lack of Positive Fundamentals**: HCTI's recent financial performance has been lackluster, with Q1 2025 revenue falling 10% year-over-year to $3.7 million and the company remaining a net loss generator. Positive fundamentals are typically a prerequisite for a sustained short squeeze, which is further diminished by the reverse stock split.
In conclusion, the combination of the dark pool short float, the reverse stock split, and the reduction in share count make it highly unlikely for HCTI to break above 0.08 cents tomorrow due to a short squeeze. Investors should remain cautious and monitor any changes in market sentiment and external factors that could influence the stock's price following the reverse stock split.