Wallstreetbets

It was a crazy day for Atlis Motor Vehicles Inc (AMV). The stock opened up nearly 200% at $243.99 but closed at $75.15, down 8.5% on the day. It was another one of these small float IPO runners as the company did a $50 million Reg A raise of 1.85 million shares at $27.50.  Everyone is expecting the stock to collapse, however there is one stark difference between AMV and the other recent small float IPOs, which can be summarized in this chart below. It shows the price and volume of HKD, AXTG, MEGL, SHPH and AMV on their second and third day of listing, respectively. The thing that immediately stands out on AMV is its volume, or lack of it. 1.85 million shares are in the offering and only 230,000 of them traded today. The LESS volume one of these types of stocks have, the BETTER the chance that it has of going through the roof. By the third day of trading, AXTG and MEGL got pounded into submission with millions of shares traded. HKD traded just three million shares in these two days,...

There was carnage in the market today. Despite that, there were two stocks that bucked the trend and finished well into the green.  Stabilis Solutions, Inc. (SLNG) finished up 71% while  Winc, Inc. (WBEV) finished up 12%.  SLNG increased as heavily as it did because it announced that it has received authorization from the U.S. Department of Energy ("DOE") to export domestically produced liquefied natural gas ("LNG") to all free trade and non-free trade countries, including Asian, European, and Latin American importing nations. Under the DOE's order, Stabilis received authority to export on its own behalf, or as agent for others, up to the equivalent of 51.75 billion cubic feet per year of domestically produced LNG. The authorization is for a term of 28 years. While 71% is a nice move, we can't begin to explain how much of a game changer this is for SLNG. So we'll just show you one chart from the IEA which should clearly explain why this is so importa...

The best short squeezes aren't necessarily the ones with the highest short interest, but the ones that completely catch shorts by surprise. This is the case for AMLX. The company's drug AMX0035 is for the treatment of ALS, best known as Lou Gehrig's disease. Last week the drug got a 7 to 2 recommendation in favor of approval by the FDA's panel. With the PDUFA coming up on September 29, things are looking up for AMLX as the FDA generally votes in favor of panel recommendations. What makes this event a particular hit to shorts is that it came as a complete surprise. The recommendation by the committee is a reversal of opinion from the ruling in March. The stock actually tanked 23% on September 2 after initial FDA briefing documents pointed to a negative outcome. Short interest has been steadily rising over the last several months, and hit 3.4 million as of August 15. However, based on the price performance of September 2, this short interest has almost certainly continue...

BBBY touched as high as $30 yesterday but is getting crushed to the $17's in early trading this morning. As traders exit the position, they might be looking for the next possible squeeze runner candidate. GETY and FAZE make two ideal candidates. In fact, if BBBY holders who are hoping for $1,000 or some other very high target sold BBBY and placed the money into GETY or FAZE, they might actually get that type of target on those two stocks because the floats are so small, short interest is high and open interest on call options is large so gamma squeeze potential is there.  A quick background, repeated from our note from last week . GETY and FAZE are two recent de-SPAC listings. Both stocks merged with their SPAC listing at the height of the bear market. As such, they both had an extraordinarily high amount of redemptions as the SPAC investors were running for safety and taking the cash, thinking that both stocks would tank out of the gate like so many other SPACs have done over the ...

GETY and FAZE are two excellent short and gamma squeeze candidates. Both of them were recent SPACs. Due to a high amount of redemptions, their floats are minuscule until each registers their S-1 and it becomes effective. This process takes several weeks after listing, and both are extremely unlikely to get approved before August 19, the data of options expiry.  FAZE has a 3.4 million share float. GETY has a 0.5 million float. Short interest as of July 29th shows just over 1 million for FAZE and 319,000 for GETY . Daily cost to borrow is in the several hundred percent, but shorts who keep an open position are willing to pay that as they are banking on each stock to sink back to $10 once the S-1s are effective. The problem with that is they do not control the timing of when the companies submit their S-1s and when they are deemed effective by the SEC. SPACs generally do have clauses in the PIPE and warrant agreements that state this needs to be done within 30 days of listing. But th...

In the recent market pullback, we have seen ex-SPAC smallcaps take a particular hard hit. One that stands out that looks on the verge of a massive turnaround is Helbiz (HLBZ). HLBZ has dropped from a September high of $41.88 to as low as $2.80 a few days ago. We think that it was manipulated downwards by funds on purpose in order to make a  convertible debenture eligible for a floor reset to $2.50 . Now that this has been done, the funds are ready to push the stock back up to make major money.  Looking at the price history, HLBZ is usually very seldom traded. But on February 2, 22 million shares were traded and the stock rose 25% from $3.06 to $3.82. These pump and dump patterns often see a stock return back to its low price on lower volume in the following days. However, the opposite happened for HLBZ. The stock saw a significant drop off in volume in the two days that followed, but the price actually rose another 5% to $4.03. All of that gain was achieved in the final hour o...

 AMC released preliminary quarterly results yesterday. The highlights include a slight beat on revenue and $216.5 million in operating cash flow generated for the quarter. The stock initially spiked on this great news but has since pulled back to close at $15.42, actually lower than it was before the news.  The same narrative of the shorts is back. That these results weren't good enough, that the company is still going to go bankrupt. There is a data point we can use to understand that this narrative is clearly wrong. Bond pricing.  If AMC was going to go bankrupt, or otherwise do poorly financially, this would be reflected in the bond prices. Bonds are mainly held by institutional investors who won't be tricked into selling like retail shareholders can be. AMC has several sets of bonds. Some of the senior debt is trading above par at very low yields, other bonds are trading at a discount because they are junior to the senior debt. I'm going to focus on three junior bond ...