Trupanion is the New GameStop: Partners With Chewy, Heavy Short Squeeze Potential

I created this blog as there is too much censorship on the Wallstreetbets Reddit forum now and it's bought and paid for by the institutions. They say to never trust an anonymous blogger on the internet. And I am an anonymous blogger. I have my reasons for remaining anonymous, and those reasons don't matter. Can you really trust articles on Bloomberg or Wall Street Journal any more than an anonymous opinion? All I ask is to debate the content of my message. Not who I am or my motivations. If you agree with what I say and think that it's in-depth, quality and truthful work, then make sure to share this on every retail channel available to you. Reddit, Discord, Stocktwits, Twitter, Telegram, Whatsapp, Tiktok and wherever else. I have just added a follow option at the top left for those who want to be notified when more blogs come out. 

Earlier today I talked about Trupanion, Inc. (TRUP).  At the time the stock was around $142. It ended the day up 39% to $155.41. TRUP announced it's teaming up with Chewy, Inc. (CHWY) to offer pet insurance to Chewy's base. If you recall, CHWY founder Ryan Cohen was the one who joined GameStop (GME) to initiate a turnaround plan, causing the famous short squeeze to over $400. 

TRUP has about about 4 million shares short on a float of 31 million shares and total shares outstanding of 40 million. So it doesn't have as high of a short interest as other stocks known for their short squeeze potential. Though TRUP's short interest % of float of about 13% is comparable to GME's today. What makes TRUP such a strong short squeeze candidate becomes apparent when looking at the NASDAQ short interest history:





















Short interest has been steadily rising since the stock was around $80 in April. When it pulled back to that mark in September, shorts should have been smart and covered. But instead they shorted even more. The key here is the days to cover. The short interest of 4 million shares is 10 times greater than the daily average volume. Even today with the stock moving up $43, the volume was only 2.6 million. It doesn't take much to move this stock, and shorts are in desperate shape, facing a margin at nearly a 100% loss since $80. 

Looking at Ortex data, not a lot of today's 2.6 million in volume was short covering:











Only a net 51,700 shares covered, so the majority of the 4 million shorts remain outstanding. Cost to borrow is still under 1% as utilization rate is still under 10%. So from a CTB perspective, holding a short is not too costly. The issue for existing shorts that will cause a squeeze is if the stock continues upwards, they will get a margin call or will otherwise have to close the position if it becomes to risky. 

TRUP, with the good news today, association with Chewy founder Ryan Cohen, and heavy short interest is a prime candidate for a squeeze of its own, possibly over $200 very soon. 

Comments

Post a Comment

Popular posts from this blog

Carvana: The Gamma Squeeze is Real, Time to Bankrupt Kerrisdale

Image
Heavily shorted Carvana Co. (CVNA) is in the middle of a squeeze. One that looks eerily similar to the beginnings of the one we saw on GME that eventually made it run to $400 and took down Melvin Capital. Once again certain market players or commentators who focus on fundamentals and who misunderstand or downplay the short squeeze thesis will only add fuel to the fire as they short the stock. Will Carvana be able to refinance its debts next year? Will it become profitable by then? Who knows, and who cares. 2024 isn't the timeline here. The timeline starts as early as June 16, 2023. Triple witching day on options. This time Kerrisdale Capital is the target. The firm is in a desperate spot because the last short call it made was C3.ai, Inc. (AI). AI is in the middle of its own short squeeze and has nearly doubled into $40's since Kerrisdale tried taking it down: The AI report is still featured alongside on the CVNA one on Kerrisdale's website , so we can assume this position
Read more

The Two Best Biotech Short Squeeze Candidates And The Next Carvana

Image
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 ANKTIVA. S
Read more

The Next NVDA-Backed Runner and New Asian IPO Squeeze Play

Image
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 brokers to fund a com
Read more