DBI Short Squeeze (Designer Brands Inc. 2-3 week trade)
I’ve been scanning for large short interest positions on small and mid-cap stocks this weekend. A few have raised eyebrows (and I will list them below…FYI) but this DBI (Designer Brands Inc.) has really prompted me to lay some research out with the intent to go long on Monday pre-market.
It’s a wild/poor chart for sure with an overall downward trajectory since 2013. Year long spikes from 50% to 500% as the chart gets closer to zero and something I think can squeeze 25 to 100% from this current point at $5.81
The Share Statistics pasted in the bottom right are from Yahoo Finance as of Aug 30/2024. Current short % of float is 93%. Percentage of stock held is over 130%...sound familiar? Current short ratio is 8-9 days to cover and it has been bought up/covered for the last 3 days. I believe there is at least a week or two of upside to capture this squeeze.
Coupled with FOMC rate cuts Sept 18th being great for small caps and a general bullish sentiment on individual small-mid caps I am going to be very watchful of volume, which is on the up-tick. Short interest is reported twice a month so I will also be paying attention to what the new numbers are this week. If it is still over say, 50-75% I’ll open more long positions and hold till months end.
RSI on the daily is also in the pits and due for a mean reversion.
The other tickers I have flagged as possible short squeezes are PLCE (53% short on float), TRUP (33%), GRPN (27%), ALT (31%...although short interest here has already been declining since May). Make of those what you will. I may play some of them in the same way.
I wish you all the best and remember our trades are our own choices. Cheers.
It’s a wild/poor chart for sure with an overall downward trajectory since 2013. Year long spikes from 50% to 500% as the chart gets closer to zero and something I think can squeeze 25 to 100% from this current point at $5.81
The Share Statistics pasted in the bottom right are from Yahoo Finance as of Aug 30/2024. Current short % of float is 93%. Percentage of stock held is over 130%...sound familiar? Current short ratio is 8-9 days to cover and it has been bought up/covered for the last 3 days. I believe there is at least a week or two of upside to capture this squeeze.
Coupled with FOMC rate cuts Sept 18th being great for small caps and a general bullish sentiment on individual small-mid caps I am going to be very watchful of volume, which is on the up-tick. Short interest is reported twice a month so I will also be paying attention to what the new numbers are this week. If it is still over say, 50-75% I’ll open more long positions and hold till months end.
RSI on the daily is also in the pits and due for a mean reversion.
The other tickers I have flagged as possible short squeezes are PLCE (53% short on float), TRUP (33%), GRPN (27%), ALT (31%...although short interest here has already been declining since May). Make of those what you will. I may play some of them in the same way.
I wish you all the best and remember our trades are our own choices. Cheers.
Note
Ok, my money is where my mouth is. I've opened an initial position and will look at options when market opens.Note
Started a first round of calls at $5 strikes for Oct 18Note
I sold at 50% profit. The short interest on float seems to be reported wildly different at yahoo finance at 93% vs everywhere else at approx 30%. 30% is still quite a bit but with spot price stalling for days I took my 50% and closed out the calls.
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