Optimer Pharma (OPTR) announced that along with the ousting of upper level management and appointment of an interim CEO, it’s putting the company up for sale. The stock is reacting favorably Wednesday morning, and despite PropThink’s negative outlook on Optimer and Dificid, a sale of the company simply doesn’t support the short position. We believe, however, that the Board sees the weakness in Dificid and that this one product company won’t make it alone. It’s not wise to stay short here as the possibility of a real sale is a risk, even as many (ourselves included) question whether a deal could bring a significant premium for shareholders. There’s major short covering going on Wednesday, and the squeeze is aiding the stock’s pop. It’s interesting to note that the company has pre-released 4Q and FY12 results, what we might call “dressing up a difficult story” to sell it. Regardless, we’re on the sidelines.