Wallstreetbets

This morning GameStop Corp. (GME) has been on fire as Roaring Kitty has returned. Stocks like Koss Corporation (KOSS), BlackBerry Limited (BB) and most notably AMC Entertainment Holdings, Inc. (AMC) are up in sympathy, though they have given up a lot of their gains.  What people need to realize is that short squeezes are all connected. There are three stocks right now that are moving up as part of the GME squeeze that are under-the-radar but are certainly correlated. The first and most obvious one is ImmunityBio, Inc. (IBRX). It was quiet at first, but shortly after GME broke $30, it moved 5% to around $8.50 and sits near its day high at the time of this write up.  When we compare the stats of GME to IBRX, they are very similar, with IBRX having a slight advantage. As the shorts capitulate on GME, look for IBRX to follow. The second one is Dave Inc. (DAVE), which has a very similar 5% spike once GME broke $30: DAVE last week had strong earnings wh...

With the market having recovered most of its recent drop to be near all-time highs once again, shorts have been destroyed and are in a desperate spot. Heavily shorted stocks like B. Riley Financial, Inc. (RILY), Globe Life Inc. (GL) and Carvana Co. (CVNA) have been on absolute tears. We have written about CVNA before , as well as the impact of CVNA's move on Root , Inc. (ROOT). When a stock is squeezing like CVNA, a related stock like ROOT will follow suit. Shorts are often shorting multiple related stocks. Most don't even hide it with Kerrisdale openly bragging about its poor track record. GL was another one that was attacked by shorts which we talked about as a gamma squeeze candidate that has worked out very well over the past three weeks.  In this market of short squeezes, we have identified two excellent biotech short squeeze candidates, ImmunityBio, Inc. (IBRX) and Soleno Therapeutics, Inc. (SLNO). IBRX is starting up the production and sale of its cancer drug ANKT...

Last week Globe Life (GL) tanked on some half-assed short report by someone called Fuzzy Panda Research. This was a blatant attempt at manipulation and it worked. Unusual Whales reported that large put option positions were being opened, including a $500,000 position in May $80 puts that was closed five hours later for $5 million. It looks like a coordinated attack with a short report that wasn't particularly strong between buddies on Wall Street. That leaves retail put option holders holding the bag as thousands of puts worth of open interest at strikes below $60 are now set to expire worthless.  The more interesting play will be the gamma squeeze potential heading into earnings. GL will be reporting its Q1 after close on Monday the 22nd. Despite a very weak market this week, GL's upward momentum has been accelerating. Since closing at its low of $49.17 on April 11, it has risen 28% to $63, with Tuesday and Wednesday (so far) increasing in excess of 5%. This creates a problem...

We have seen stocks like Super Micro Computer, Inc. (SMCI) and SoundHound AI, Inc. (SOUN) have incredible squeeze runs thanks to their connection to NVIDIA Corporation (NVDA). We think the next one will be Spire Global, Inc. (SPIR), which popped a week ago after it announced a collaboration with NVDA to enhance AI-driven weather prediction. A few day later it dropped on the announcement of a financing at $14, with the potential to raise $61 million if warrants at $14.50 are exercised. We think there is a good chance that NVDA got in on this financing, as it tends to invest in the companies it does these deals with when spreading AI across different sectors. One such recent example was with Recursion Pharmaceuticals, Inc. (RXRX) for AI in drug development.  It looks like SPIR didn't really need this financing as it has enough cash and looks like it will be cash flow and net income positive in 2024. This financing was of a strategic nature, not something led by broker...

 Back in June, we called out Kerrisdale Capital and its short on Carvana Co. (CVNA) in our piece " Carvana: The Gamma Squeeze is Real, Time to Bankrupt Kerrisdale ". Kerrisdale has a history of calling one bad short after another, creating a squeeze on all of its positions as the firm and its associates face liquidity crises. Kerrisdale is once again on a cold streak as its short on Altimmune, Inc. (ALT) simultaneously blew up just as CVNA headed from $70 to $80 this week.  However, we think CVNA is done for now. Recall that in June after the initial spike to nearly $30, the stock pulled back to $20 before hitting $40 in the next month. People who are riding weekly call options aren't likely to cash in. CVNA looks headed to the mid to low $60's to close the gap that currently exists in the $62 to $66 area before resuming any further rise. Kerrisdale created an artificial short squeeze with its report, but now that both ALT and CVNA have come down from their weekly hig...

The Children's Place, Inc. (PLCE) is another retail stock like BBBY or GME that shorts are betting will falter. It looked that way a few days ago when the stock dropped under $9.00 after a poor quarter. However, what has since followed has set up the stock to become an epic short squeeze not seen since GME.  Saudi Arabian firm Mithaq Capital has been buying up PLCE shares at a ridiculous pace, having bought up 6,751,387 shares from February 9th to February 13th as disclosed in several Form 3 and Form 4 SEC filings starting on the 13th . This represents of 54% of all shares outstanding and since this is only up to the 13th, that means the firm could have purchased more shares since then.  This is not some joke like Cohen's BBBY disaster. Mithaq is in the process of taking over Aimia Inc. (AIMFF), but the ferocity of buying on PLCE makes that deal looks like child's play. It has spent nearly $100 million on PLCE shares in three trading days, and counting. Mithaq  plan...