Is TRKA Stock the Next GameStop? Why Reddit Thinks So

They’re ways that investors can make a big profit with relatively small payments up front, if the stock moves in the right way. Many of the traders pushing up GameStop are smaller-pocketed or novice investors. Enthusiasm has grown for GameStop’s prospects after the company said earlier this month that a co-founder of Chewy, the online seller of pet supplies, was joining its board. Investors see Ryan Cohen helping GameStop’s digital transformation.

  1. Obviously, the core products enhance the progression and viability of clean transportation.
  2. Note that these share counts (usually around the end of February or early March of the following year) and the share price (usually from June 30 of the reporting year) are from the company’s 10-K filings.
  3. Troika Media Group is an acquisitions company that can trace its roots back to Roomlinx, a Nevada-based firm founded in 1998.
  4. With that in mind, here are other possible ideas for Reddit stocks that could be the next big thing.
  5. Because of the mainstream attention that this recent rally (that’s probably about to end) generated, it’s possible that the sentiment may have reached critical mass.

By way of background, a short squeeze refers to the rare event where the price of a stock with significant short interest unexpectedly rises. Short Interest reflects the number or percent of shares that have been borrowed by a person or institution and sold short, but have not yet been covered or returned to the rightful owner. The borrower of the stock actually sells the shares (they do not own the shares) and hopes to buy the shares back at a lower price with the intent of returning the shares to the rightful shareholder.

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The company has kept top-tier auditor Deloitte & Touche since 2013 and frequently updates shareholders in its detailed earnings calls. CEO Matt Furlong is refreshingly straightforward about GameStop’s prospects. My initial assessment of Troika assumed that the firm would act in good faith to keep investors updated about its outsized Series E deal. A Schedule 13D or 8-K filing should have notified shareholders of any significant exercise, since the dilutive effect would be 1) a material event, 2) a 5% or more change in ownership, or 3) both.

The company’s results for the first quarter of fiscal 2022 (for the three months ended April 30, 2022) weren’t impressive, either. GameStop reported $1.38 billion in quarterly revenue, representing an increase of 8% over the prior year. However, a closer look indicates that GameStop’s reliance on hardware sales is turning out to be a headwind. This makes GameStop the latest company to join the stock-split bandwagon.

As the Head of Quantitative Strategy at Seeking Alpha, I am immersed in data. Seeking Alpha’s Very Bullish Quant recommendations are up YTD 50.65% compared with the S&P 500, up 26.41%. The process of making sense of statistics that have been collected, analyzed, and scored has served as a solid foundation in identifying trends and making transparent predictions. It has also allowed me to develop user-friendly web-based tools that provide individuals with the indicators and signals required to interpret a stock’s strength or weakness instantly. The results in the below SA chart speaks volumes to our success. Below is an example of how the quant factor grades and quant rankings are displayed.

All told, GameStop looks like a stock-split play that investors may want to avoid. However, there is a perception that the lower dollar value following a split means that shares are now available to a wider pool of retail investors. As a result, the demand for shares could go up and send prices higher.

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When it comes to playing around with high short interest stocks, unless you are uncommonly lucky, let’s just say the risks greatly outweigh the rewards. Biotechs figure prominently on the list, and certainly some of last year’s meme stock favorites continue to hang on. Just be forewarned that this list is for informational purposes only. GME, for example, has lost more than a quarter of its value so far in 2022. Shares in Robinhood Markets (HOOD, $14.40), whose free app became ground zero for meme-stock trading volume, have slumped almost 20%.

Tom Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad. On the date of publication, Tom Yeung did not hold (either directly or indirectly) any positions why new traders should use stop loss orders in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. Troika has yet to see a boardroom fight end in a hostile takeover. And TRKA stock shares have been non-compliant with Nasdaq listing requirements for far less time than beaten-down BBIG stock.

Reddit: Short Interest and Short Squeeze Defined

But lately it’s been more about inflicting pain on short sellers, hedge funds and other big financial firms. Many talk about it in terms of evening the ledger with the financial elite, who benefited from years of gains as other people fell further behind. When a stock is very heavily shorted, a rise in its price can force short sellers to get out of their bets. To do that, they have to buy the stock, which pushes the stock even higher and can create a feedback loop. As GameStop’s short sellers have gotten squeezed this month, smaller and first-time investors have been egging each other on to to keep the momentum going. In a short sale, they borrow a share of GameStop and then sell it.

Updating our model daily also ensures that all of the quant data is near real-time. The result is something of a shakeup in the list of stocks with highest short interest, as measured by the percentage of shares outstanding sold short. Although a number of meme stocks remain, many have been replaced by more traditional short bets. Investing in stocks, whether long or short positions with a high level of short interest, is extremely risky. The risk is so significant that many traders will not carry the positions overnight and look to re-establish positions each morning.

After all, biotechnology stocks with small market capitalizations have always been targets for short sellers. Heck, short interest in HRTX has been above 10% since mid-2018. The above table displays 30 stocks with short interest above 10%. FINRA requires firms to report short interest positions in all customer and proprietary accounts in all equity securities twice a month. In an effort to capture this data, Seeking Alpha’s quant model’s algo is updated daily, ensuring we do not miss when the short interest data is reported.

But analysts still expect GameStop to keep losing money in its next fiscal year. Unless it can sell a lot of lidar systems in the near future, MicroVision will probably have to sell more stock. Get a brief on the top business stories of the week, plus CEO interviews, market updates, tech and money news that matters to you. “In recent years elevated crowding, low turnover, and high concentration have been consistent patterns, boosting the risk that one fund’s unwind could snowball through the market,” Kostin wrote. Plus, it might not hurt that MARA features a short percent of float of 20.4% (though its short ratio of 1.7 is quite low). As many of you may know, cruelty to animals is “symptomatic of a deep mental disturbance,” per Henry R. Hermann Ph.D., a researcher in human behavior and criminality.


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