Could This Short Squeeze Name Be Headed for the Moon Again?
The king of the “meme stocks” that kick-started the short squeeze trend earlier this year is gaining Wall Street’s attention yet again.
I’m talking, of course, about GameStop Corp. (GME).
We’ve already seen some unbelievable gains – followed by massive drops – this year on GME stock as retail investors collaborated to squeeze the enormous amount of short positions in the declining video game retailer.
And while GME stock has levelled off and held relatively steady over the last month as the company transitions to a focus on digital sales, there are still a lot of traders betting against it.
With the percentage of shorted shares on the rise, new speculation is popping up that a catalyst could give GME another huge boost in the near future.
Where’s the money?
After the coordinated buying spree sent GME stock through the roof in late January, many of the biggest short sellers of GME stock were forced to unwind their positions in the face of mounting losses – in some cases in the billions of dollars.
As such, the percentage of shorted shares fell dramatically.
But for the last two months, short interest on GME stock has been slowly climbing. At present, GME’s short percentage of float is just over 27%.
Meanwhile, an army of retail investors that are dedicated to keeping the buying pressure up are tracking every movement of GME stock.
And yesterday, new theories began popping up on the popular online forum Reddit that suggested Citadel Securities – one of the biggest short sellers of GME – had been margin called on their short position.
GameStop bulls are looking at this potential margin call as a catalyst that could send GME shares for a rocket ride once again. GME traded up as high as 3.28% yesterday.
Here’s what I think…
How do I get some?
I think the GameStop story is over.
We saw unbelievable gains in GME earlier this year because of the insane amount of short positions. Just before its first spike, more than 140% of GME’s shares had been shorted.
Today, it’s nowhere near that.
So, while we may see some solid profits still to be had in GME in the margin call rumors are true, it won’t be close to the magnitude we saw in January.
But that does not mean that the short squeeze craze is over for other names.
Recently, we’ve seen the Reddit group come together and pump up highly-shorted names like Tilray, Inc. (TLRY) from $16 to $67 and Rocket Companies, Inc. (RKT) from $18 to $42.
So, I will continue to keep an eye on the most heavily shorted names for the next great profit opportunity.
And I know just how to find them…
The Only Way to Get My Next Short Squeeze Pick Before It Pops
What happened with GameStop is a clear signal that you CAN beat Wall Street at its own game. But I’m not interested in waiting around for the next big move.
That’s why I monitor those massive bets from the institutions and hedge funds every single day.
Using the full suite of tools in my S.C.A.N. system, I’m able to track where the biggest money flows from traders is moving. I see every move they make, the moment they make them.
That means that we can find these “Super Squeeze Trades” in real-time with ease and provide subscribers with the right trade recommendation to take advantage.
And the best part? You get in before the rush, allowing you to take the biggest profits for the best price.
I’ve put together a critical presentation to tell you everything you need to know so you can pinpoint the next Super Squeeze trade opportunity – before it takes off.
In the Spotlight:
One of the biggest names in the video game industry continues to outperform.
This is one stock you’ll want to keep an eye on.
Activision Blizzard, Inc. (ATVI) absolutely crushed its latest earnings report this week – with huge beats on revenue ($2.07 billon vs. $1.79 billion expected) and earnings per share ($0.84 vs. $0.71 expected).
Among the many reasons for ATVI’s stunning financials is the continued success of its Call of Duty games.
Call of Duty: Black Ops Cold War was the best-selling game across all platforms in March.
Activision is a stock that I will be watching for any dips in the future as a great buying opportunity. I believe the increased number of gamers that the pandemic created is here to stay, and Activision will continue to be one of the industry’s top performers.
I’ll be sure to let you know when the time is right to jump in.