Wallstreetbets

Vroom, Inc. Common Stock (VRM) recently re-listed after going through bankruptcy proceedings. This is truly the greatest short squeeze candidate you'll find right now as it is a highly shorted, low float and low volume play. Shorts are truly trapped. Stats from Yahoo Finance : There are 240,000 shares short on the stock with a float of only 427,000. Unlike so many other stocks with "small" floats like this but trade millions of shares a day, VRM has averaged only 25,000 shares traded per day since re-listing. That's a sign that the trading is real and not being manipulated by bots and market makers. Shorts likely shorted that heavily thinking that bankruptcy would result in a de-listing and the stock being worthless. But that clearly didn't happen. Now they are stuck with a short position on a stock that hardly has any volume and it's impossible to exit without significantly moving VRM upward. This is one of those rare times where retail buying can actually ca...

Yesterday we talked about the correlation between GameStop Corp. (GME) and several other short squeeze plays, namely ImmunityBio, Inc. (IBRX). Unfortunately for IBRX longs that didn't pan out today as GME rose over 60% but IBRX dropped 2%. In the morning it was looking like IBRX was going to follow GME as it was up 5%, but unfortunately GME pulled back from its pre-market spike to $80 so the impact was short lived on many short squeeze plays, including IBRX. What people need to realize is that short squeezes are all connected. The same firms short several of the most popular shorted stocks and the same mechanisms that allow shorts to gain a position in the first place exist across all of them. If one heavily shorted stock squeezes, others will follow. 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.

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...

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...

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, mos...

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, sto...

 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...

Earlier today we stated that Root, Inc. (ROOT) and Recursion Pharmaceuticals, Inc. (RXRX) were next to squeeze after Carvana (CVNA). One month ago  we mentioned  the gamma squeeze potential on CVNA. Now that this is at hand and the stock has more than doubled, it's time to go long on two other heavily shorted stocks that stand to benefit from the CVNA squeeze as desperate shorts have to cover.  The strategy worked perfectly as ROOT increased 19% and RXRX increased 16% on the day while CVNA rose another 40%. This will be just the beginning as shorts are hemorrhaging on multiple related positions. If you look at the chart for the day, it becomes very clear how highly correlated these three stocks are right now. This is undeniably a sign that shorts, particularly algo HFT shorts are covering simultaneously held positions.  CVNA  made a $126 million investment  into ROOT and has embedded its insurance program into its systems. So any improvement in financial p...

One month ago we mentioned the gamma squeeze coming up on Carvana (CVNA). Now that this is at hand and the stock has more than doubled, it's time to go long on two other heavily shorted stocks that stand to benefit from the CVNA squeeze as desperate shorts have to cover. These are Root, Inc. (ROOT) and Recursion Pharmaceuticals, Inc. (RXRX) CVNA made a $126 million investment into ROOT and has embedded its insurance program into its systems. So any improvement in financial performance on CVNA implies that ROOT will also follow. It currently has 1.4 million in short interest, representing approximately 15% of the float. Not nearly as much as CVNA, but considering that ROOT trades only around 200,000 shares or so in a day, it can really take off in any sort of squeeze. Or as people realize that these two companies are financially linked and CVNA profits come heavily into ROOT.  RXRX has doubled in price recently after a $50 million investment made by NVIDIA Corporation (NVDA)....

Two months ago we wrote a blog about certain AI SPAC and IPO listings. Bullfrog AI Holdings, Inc. (BFRG), Presto Automation Inc. (PRST) and CXApp Inc. (CXAI). We suggested to buy their warrants, listed as BFRGW, PRSTW and CXAIW respectively. BFRG and BFRGW haven't done much since then. CXAI has been about flat, but CXAIW has gone on a great run from $0.14 to $0.55, resulting in substantial profits for buyers two months ago.  As profits have already been taken on CXAIW and BFRG is quiet right now, what we want to focus on at this time is PRST and PRSTW. Despite the stock steadily moving up to $4.70 in two months, the warrants have remained in the $0.10 range. They expire in September 2027 so there is plenty of time left on them. These warrants have a strike price of $8.21 and it takes two warrants to exercise for one share. So for instance, if the stock price moves to $18.21, the warrants aren't worth $10, but $5. The warrants also have an early redemption call price of $...

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 ...

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. The first thing to make note of is the general market. High beta and highly shorted listings (not in terms of percent of float, but in terms of number of shorts outstanding) like QQQ, TSLA and AMZN are hitting year or multi-month highs. This is causing pain and margin call pressure to shorts. This is important because the entities that are likely to short CVNA would also b...

Last week out of nowhere, TOP Financial Group Limited (TOP) rose from $7 to as high as $250. As a result, a bunch of Chinese and Hong Kong-related listings followed suit on Friday, including Huadi International Group Co., Ltd. (HUDI), Magic Empire Global Limited (MEGL), Dunxin Financial Holdings Limited (DXF), Jiuzi Holdings, Inc. (JZXN), Top KingWin Ltd (TCJH), Baosheng Media Group Holdings Limited (BAOS), Addentax Group Corp. (ATXG), WeTrade Group, Inc. (WETG), Tian Ruixiang Holdings Ltd (TIRX), Leju Holdings Limited (LEJU), AGBA Group Holding Limited (AGBA),  Lichen China Limited (LICN), Uxin Limited (UXIN), Golden Sun Education Group Limited (GSUN),  Powerbridge Technologies Co., Ltd. (PBTS), U Power Limited (UCAR), WANG & LEE GROUP, Inc. (WLGS), Smart Powerr Corp. (CREG) and AMTD Digital Inc. (HKD). One stock that we think stands out of this list is  JX Luxventure Limited (J...

Three recently-listed AI stocks have been hot over the past couple of weeks along with Guardforce AI Co., Limited (GFAI). These are Bullfrog AI Holdings, Inc. (BFRG), Presto Automation Inc. (PRST) and CXApp Inc. (CXAI). Today is PRST's day so far as it's up over 30%. The best way to play these stocks are the warrants, listed as BFRGW, PRSTW and CXAIW respectively. Just look at what has happened to GFAIW. It has moved from a few pennies to over $0.40. The problem is GFAI had a 1-for-40 reverse split, causing the strike price of the warrants to move into the hundreds of dollars. This won't be the case for these other three stocks. If they move like GFAI has, these warrants will be worth multiple dollars.  BFRG/BFRGW : These warrants have a strike price of $7.80. This is an IPO rather than a SPAC so these warrants are very straightforward with no early redemption clauses and a five year time to expiry. Since the stock price is right around the strike price of these warrants,...

CBL International Limited (BANL) is a recent IPO that started trading last week. In the five trading days of listing, it has consistently gone up on relatively little volume: This setup is reminiscent of other recent low volume spikers like Intuitive Machines, Inc. (LUNR) that ran over $100 or Ambipar Emergency Response (AMBI) that ran to $50 on relatively little volume. But the most exciting comparison will be to AMTD Digital Inc. (HKD), which ran up to $2,500 in its first couple of weeks of trading: BANL is a shipping company with operations in Malaysia, China, Hong Kong and Singapore. So like HKD, it's another stock with ties to Asia. It has strong growth with over $400 million in revenue over its reported prior four quarters and is profitable with a $0.14 EPS. So it's a revenue-generating entity like HKD and not just a shell for dilution. It has 25 million shares outstanding and a 3.2 million float. Making it considerably smaller than HKD. BANL is definitely one to watch c...