Profit Pregame

This Stock Could See a Big Surge as GME Falters

GameStop is Feeling a Squeeze of Its Own This Week

After a tremendous run up thus far this year, the GameStop squeeze may be showing some cracks.

What’s happening?

If it seems like nearly every market-related headline has to do with short squeezes lately, you’re not wrong.

All of the attention is well justified.

The king of the “meme stocks” – GameStop Corp. (GME) – has experienced some of the most volatile moves of any stock in the entire market this year.

Since falling back down to under $40 per share after the initial boom in late January, GME went on a 793.5% rocket ride to unbelievable new highs.

The epic move highlights the incredible power that the new wave of retail investors have when their efforts are coordinated.

But as GameStop stock began to retreat from its recent high of $344.66 this week, those investors hoping to squeeze the short positions even further got some bad news.

Where’s the money?

Despite revealing in its Q1 earnings report that sales having grown by 25%, GME stock fell by more than 25% yesterday.

The dramatic drop is the result of an announcement that the company plans to sell an additional 5 million shares of its stock in an at-the-market offering. At current levels, the sale could be worth more than $1.5 billion.

While the additional funds raised by the sale would likely assist GME in upgrading its business and making key acquisitions, investors are likely wary of buying at these heights. The sale would also serve to dilute the ownership stake of GME shares.

Many investors have surely also bailed on GME stock as reports surfaced that GameStop is involved in an SEC investigation into the “meme stock” phenomenon.

While GME still has a large, dedicated following that will continue attempts to buoy the stock, casual investors may have seen enough and are looking for the door.

But the short squeeze trend is far from over.

Here’s where I see the next big squeeze coming from…

How do I get some?

Gamestop shares are now down more than $80 in a couple of days – and I believe many investors have lost their stomach for continuing to hold a stock that has already pushed so high.

I think it will go lower as they continue to sell more shares and take profits.

Looking ahead, I think one of the best ways to play the short squeeze names is through United Natural Foods, Inc. (UNFI).

Stocks that have performed well during the pandemic have begun to pick up a lot more short interest as vaccination efforts continue. But the fight over COVID-19 will be a more prolonged battle than many realize, and some of the trends created by it are here to stay.

So as shares of UNFI have dipped lately, traders have piled back in at a discounted rate. And with more than 10.7% short float, a spate of buying could help UNFI make a dramatic move up in no time.

This stock has been showing up on several of my scanners lately, giving me an indication that momentum is picking up. This is a name I’d highly recommend considering for your next short squeeze play.

The Short Squeeze Edge You’ve Been Looking For…

What happened with GameStop is a clear signal that you CAN beat Wall Street at its own game. But you can’t be content to wait around for the next big move.

That’s why I monitor the massive short positions of the institutions and hedge funds every single day.

Right now, I have a list of 150 stocks I’m watching. These are the best short squeeze candidates in the market.

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.

And when S.C.A.N. helps me identify unusually large options activity on a stock with high short interest, that’s my queue to alert subscribers of Super Squeeze Profits to jump in for potentially explosive gains.

And the best part? You get in before the rush, allowing you to take the biggest profits for the best price.

To see exactly how my system works and the kind of mind-blowing profits my research and recommendations can show Super Squeeze Profits subscribers how to achieve, click here.

In the Spotlight: Time is not on this semiconductor company’s side

Investors in NVIDIA Corporation (NVDA) were thrilled by the announcement in September 2020 that it planned to acquire Arm Holdings – a microprocessor designer – for $40 billion.

But as the months go by, NVDA has signaled that the deal may take longer to close than hoped.

Nvidia stock has surged nearly 45% since the acquisition announcement was made.

But the stock began to slip yesterday as reports indicated that the merger could take far longer than the 18-month timeline the Nvidia initially laid out.

The holdup centers around a Chinese subsidiary of Arm that Nvidia would need approval from Chinese authorities to acquire.

And powerful Chinese companies like Huawei and E-Town Capital have opposed the deal.

We’ll have to wait and see how this hiccup for one of the world’s premier semiconductor companies plays out, but if a resolution isn’t reached soon, NVDA could lose a significant amount of its recent gains.

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