Top GME Redditor DeepFuckingValue Names HGEN As A Top Pick - GME, AMC, EXPR, KOSS, LIVE

DeepFuckingValue, also known as Roaring Kitty, is the prolific GME investor who has led the shorting squeeze charge. A Reddit poster recently broke down his top picks outside of GME, as shown in an image of his notebook:




The one that stands out the most is HGEN. At the time of this note, HGEN was $19.59, trading slightly above where it is today. But the key difference being between now and last month is that HGEN announced Positive Phase 3 Topline Results Demonstrating That Lenzilumab™ Improves Survival Without Need for Mechanical Ventilation in Hospitalized Patients With COVID-19. The stock shot up to $29 on a short squeeze fueled rally after the news but pulled back as the company got 5 million shares of financing at $18.50 to raise $92.5 million. 

Usually investors view financing as bad news, but this is done with a distinct purpose. The company is going to be manufacturing Lenzilumab in advance of expected Emergency Use Authorization granted by the FDA. The timing of this grant is expected to happen in weeks, so speculative investors will be buying up the stock in anticipation of this decision.

In addition to being one of DFV's top picks, HGEN remains a strong short squeeze candidate. Shorts that were squeezed the first time around have been replenished by other shorts as shown on the daily volume report on nakedshortreport.com:










This is a chart of the share float and short interest of the top meme stocks and short squeeze candidates as of Wednesday's close:










GME remains the one with the highest short % of the float at 45%. HGEN is #2 with 26%. This is much greater than the numbers imply, showing that Yahoo believes that the float is much tighter or short interest is higher than actually reported. While AMC has a lot of short interest, its short % is down to 11%. This is indicative of the heavy dilution that took place. People who are betting on AMC to run on a short squeeze are just wasting their time. Shorts will cover into the heavy dilution at low prices, not on the open market at high prices on a squeeze. 

LIVE remains a dark horse play. The short interest is low, but it doesn't really need short interest because of its extremely small float of only 1.27 million shares. KOSS has generally had a low short interest but that didn't stop the stock from running to over $100 from $10. LIVE's float is less than half of KOSS. Also LIVE is the only one in the group that has earnings and a P/E ratio. Most P/E ratios are around 20 so LIVE being at only 5 makes the stock four times undervalued. We think it can reach $100 to come more in line with average P/E ratio numbers. 

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