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

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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

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

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 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

PLCE is the new GME and Mithaq Capital is the new Ryan Cohen

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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  plans to n

CRSP And BLUE Shareholders Need To Team Up To Take Down The Shorts Instead Of Taking Down Each Other

On Friday, CRISPR Therapeutics AG (CRSP), along with its partner Vertex Pharmaceuticals Incorporated (VRTX) got approval from the FDA for its therapy Casgevy for sickle cell disease. bluebird bio, Inc. (BLUE) also received approval for its therapy Lyfgenia for the same disease. Despite the approvals, CRSP went down 8% while BLUE dropped 40% in "sell on news" type of action and a lot of making mountains out of molehills by shorts on the already well-known negatives surrounding these novel therapies.  CRSP has a 40%/60% split with VRTX, so we can infer that Casgevy has a $9 billion valuation based on CRSP's $3.6 billion enterprise value. BLUE has a market cap of just over $300 million while already generating revenue on its pipeline. While Casgevy is being assigned a much higher valuation than Lyfgenia, both of them are undervalued compared to the potential market size of the United States alone. They should be going way up, not down, on an approval and ability to immediate

ParaZero Technologies is the Next Potential 800% Winner

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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 stea

CCG, AONC, MURF, UPTD - Why LZM Makes the Best Low-Float SPAC Pump of Them All

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This week the low volume, low float SPACs came alive when Cheche Group Inc. (CCG) shot up to $200 from $11 in a day. That was followed up by an increase in interest in other similar stocks like American Oncology Network Inc (AONC), TradeUP Acquisition Corp. (UPTD), and Murphy Canyon Acquisition Corp. (MURF). One stock that some of the crowd has overlooked but might be the best of them all coming up this week is Lifezone Metals Limited (LZM). It moved up 37.5% on 524,000 volume on Friday, which is exactly what you want to see. When CCG shot up to $200, or the infamous AMTD Digital Inc. (HKD) shot up over $2,000 or the forgotten Addentax Group Corp. (ATXG) shot up to $600, these stocks did it on volume of only a few hundred thousand shares. You don't want to see millions of shares traded, regardless of the float. Whether that's in the form of algo bots flipping incessantly, shorts or naked shorts or investors with locked shares finding ways to hedge their position, stocks with hi

Fulcrum Therapeutics: A Short Squeeze and a Gap Fill

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 Fulcrum Therapeutics, Inc. (FULC) makes an excellent short squeeze and gap fill candidate. It shot up 39% on Tuesday after the FDA ended a clinical hold on its sickle-cell disease candidate FTX-6058. The stock dropped from $12.89 to $5.66 on February 24th after the FDA placed the hold on it, so it would make sense that the stock reverses most of those losses now that the hold has ended.  Right before the hold, the company raised $125 million at $13 per share. That left the company with about $280 million in cash and marketable securities on its books with marginal liabilities, or about $4.50 in cash per share. Even with the hold being lifted, it's trading at just above its cash value. So it has fundamental value as well as being a good technical trade. Here is where things get interesting. The stock has topped out at around $6.40 over the past couple of days. On February 24th - the day it dropped from $12.89 close on the previous day - it hit a high of $6.49. Above that level ther