Wallstreetbets

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)....