The lending pool for MRLN has effectively dried up. Availability has collapsed to near zero — the tightest level in 52 weeks — while borrowing costs have surged 664% over the past month to 161.5%.
This isn't a slow build. The cost-to-borrow data tells the story clearly.
At the start of April, CTB sat at roughly 16%. By April 10 it had jumped to 49%. By April 13 it crossed 100%. It now stands at 161.5% — up 62% in a single week.
The availability picture confirms the squeeze. With the lending pool at its 52-week low, virtually every share available for borrowing has already been lent out. There is almost no slack left in the market.
Short shares outstanding have risen 15.2% over the past week to approximately 2.19 million. That simultaneous move — more shares borrowed, near-zero availability, exploding CTB — is a classic signal that demand for borrows has overwhelmed supply.
Short sellers are paying an annualised 161.5% to hold their positions. That is an enormous carry cost. Yet the stock has risen 12.7% over the past month and 8.1% over the past week, closing at .
Short sellers are losing on both ends: a rising stock price and a borrowing bill that compounds daily. The options market adds another layer. The put/call ratio stands at just 0.18 — well below its 20-day average of 0.50. Options positioning has tilted heavily toward calls, suggesting options traders are not aligned with the short sellers' thesis.
Roth Capital initiated coverage of Merlin with a Buy rating and a $15 target on April 14. Two days later, the firm raised that target to $25 — a 67% increase — while maintaining the Buy. The analyst target now sits at $25 against a current price of $9.32, implying significant upside in the analyst's view.
Next earnings are scheduled for June 18. That date is now a focal point for anyone holding a position — long or short — in a stock where carry costs are running at this level.
See the live data behind this article on ORTEX.
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