ParaZero Technologies is the Next Potential 800% Winner

While the world has seen an uptick in unfortunate conflict this past week, war, terrorism and violence has actually been the catalyst for massive gains in the small cap world. First, Israeli stocks that can be loosely tied to defense like HUB Cyber Security Ltd. (HUBC), SuperCom Ltd. (SPCB) and Mobilicom Limited (MOB) shot up. Then on October 11, Tempest Therapeutics, Inc. (TPST) went up a ridiculous 4,000% on the day. That led to numerous small cap stocks spiking well in excess of 100% or even 500% in the coming days - with or without news - such as Versus Systems Inc. (VS), OpGen, Inc. (OPGN), Secoo Holding Limited (SECO), Bio-Path Holdings, Inc. (BPTH) and Sigma Additive Solutions, Inc. (SASI). Unfortunately for shareholders, most of these stocks gave back much of their gains. So if you chased or didn't take profits fast enough, you went from green to red quite quickly. 

Why did this happen? If you look at a long-term chart on these stocks, most resemble ski slopes from the steady stream of dilution at ever-lower prices. Stocks like VS and OPGN couldn't wait to push out further dilution either through new financings or warrant exercises. TPST tapped into $7 million of its $100 million shelf offering immediately after its spike, though we think that was a smart move. SPCB has a history of doing financings that kill any rally. For instance, the financing that was filed immediately after a spike in volume and a short-lived pop on July 31.

What shareholders need to look for in the next sustainable massive mover is a stock that is clean without a history of massive dilution. ParaZero Technologies Ltd. (PRZO) is just that stock. It is the best of both worlds as being an Israeli company specializing in drone safety systems, while also having a clean and tight share structure with only a $20 million market cap. The company just announced an expanded collaboration into the defense market for drones. It has only 6 million shares outstanding with a 2 million float. PRZO just did a $6 million IPO back in July, and according to that filing, the company will have sufficient cash to fund operating expenses and capital expenditure requirements through January 2025. So there is no plans to dilute any time soon, especially not below the IPO of $4.00. 

What has all of this resulted in? While most of the stocks we mentioned above pulled back substantially after their runs, PRZO ran 55% to close at $3.30 on Friday. Check out the price history posted below. This isn't a one day pump and dump. The run from $0.65 to $3.30 has been sustained. It pulled back to the $1.60 range for a couple of days then raced higher to make new highs. This is exactly the type of chart you want to see as a trader, not chasing pump and dump gambling plays up 800% in the morning then giving back most of those gains by the end of the day like OPGN. PRZO has the fundamentals as an Israeli defense play, it has a small float, and it has excellent chart technicals right now with a sustained run over several days. This is the type of stock that can give you an 800% winner. 



Comments

Post a Comment

Popular posts from this blog

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 ANKT...
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 broker...
Read more

Forget about CVNA, PLCE is the Next Major Short Squeeze Play

Image
 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...
Read more