Energean plc (OTCMKTS:EERGF) Short Interest Up 33.1% in March

Energean plc (OTCMKT: SEERGF) is an international oil and gas exploration and production company with a focus on Europe and Israel. The company's operations include the production of natural gas and crude oil, as well as the development of new projects.

According to recent data from FINRA (Financial Industry Regulatory Authority), the short interest in Energean plc's American Depositary Shares (ADSs) increased significantly in the month of March. Specifically, as of March 15, 2023, there were 71,900 shares sold short, representing a 33.1% increase from the previous reporting period on February 29, 2023, when the short interest totaled 54,000 shares.

Short selling is a trading strategy where an investor borrows shares from a broker and sells them on the open market, with the expectation that the price will decline, allowing the investor to buy back the shares at a lower price and profit from the difference. The number of shares sold short represents the potential maximum number of shares that could be available for purchase if all short sellers decided to cover their positions at once.

The days-to-cover ratio is a measure of the number of trading days it would take for the stock to trade the total number of shares sold short if all the short sellers decided to buy back their positions at the current rate of trading volume. In this case, with an average daily volume of approximately 100 shares, the days-to-cover ratio for Energean plc is [calculated as (Total number of shares sold short) / (Average daily trading volume)], which is [71,900 / 100 = 719 days]. This indicates that it would take approximately 719 trading days for all the short sellers to buy back their positions at the current trading volume, assuming no new short selling or buying activity.

It is important to note that the days-to-cover ratio is not a definitive indicator of the stock's price direction, but rather an indicator of the potential buying pressure that could be required to cover all the short positions if the stock price were to experience a significant rise. Additionally, the ratio can be influenced by various factors, including changes in trading volume and the number of shares sold short, as well as the company's financial performance and market conditions.

In summary, the significant increase in short interest in Energean plc's ADSs, as evidenced by the 33.1% jump in the number of shares sold short between February and March, has resulted in a high days-to-cover ratio, indicating potential buying pressure if the stock price were to rise significantly. However, this ratio should be considered in the context of the company's overall financial situation and market conditions, and should not be the sole determinant of investment decisions.