Short Squeeze is real and happening. Today, GS (Goldman Sachs) came out with a report that shows how heavily shorted stocks are surging and beating market by wide margin.Now, SPG & MAC are two heavily shorted mall REIT's. They have nicely moved up in recent days, but nothing that says there is a short squeeze in play.How will you play that?
I read a couple of blogs this weekend on short squeezes last week, Friday I think. Below is link to one blog.https://theirrelevantinvestor.com/2021/01/22/game-on/The top 6 shorted stocks, NYSE I think, rose at least 5% Friday. Note that gamestop which had a 102% short interest popped 51% in a single day. In another blog post the blogger wrote of the gamestop squeeze starting on a reddit trading message board. Years ago I remember reading about one persons theory of bubble tops coming in 6 or 7 steps with the naysayers and shorts being driven out of the market as the next to last step.
I have a few value stocks with high short interest. Some for reasons that I cannot figure out. Most were up strong Friday and so far today. One big gainers for me today, is food manufacturer BGS with a 35.5% short interest and up 15% so far today. Its products are mostly shelf stable. Its 3Q sales were up 22% in 3Q2020 vs. 3Q2019, although down slightly from 2Q2020 when grocery shelves were largely emptied of shelf stable items. Sold my BGS, BBBY, and DKS (all with high 10% or above short interests) in retirement accounts earlier this morning. Still holding BGS and DKS shares in taxable account and will look at selling them when they go long term in March depending on what the price and fundamentals do between now and mid-March.
Still holding BGS and DKS shares in taxable account and will look at selling them when they go long term in March depending on what the price and fundamentals do between now and mid-March.Hi VM!I bought into BGS on 02/27/2020, too, and may follow your lead in March. The Green Giant acquisition gives me pause though because, depending on how that pans out, it may be a big deal for BGS.David
I first bought BGS and TSN in late February, but tripled down on BGS a month later. When I sold near $40 this morning it was just too much of a rise and had become just too large of an holding. It is odd that I first bought BGS and TSN as a defensive play as food producers do relatively well during economic down turns. Odd, and tragic, how covid affected TSN, but not BGS - to me a true black swan.
Below is a link to a thoughtful article on the grocery business and the stocks of grocery stores. https://mailchi.mp/verdadcap/the-grocery-store-puzzle?e=b838...It is applicable to both owners of grocery store stocks as well as the REITs that lease to grocery stores. And to the owners of food producers like David and I.The thing the writer does cover is that 1) grocery store costs went up during COVID and 2) grocery stores have always been low margin businesses and to a lesser extent this is true of most retail. For grocery store landlords like KIM and BRX does it matter if grocery stores are highly profitable or just profitable enough. Ditto for grocery producers!
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