In an article titled “10 New Stocks Reddit’s WallStreetBest is Buying”, Usman Kabir discusses the Reddit platform as it became the signle most disruptive force in the stock market in 2021 with more than 11.3 million members.
The platform became famous for the GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC) Short Squeezes earlier this year causing institutional investors like hedge funds to take multi-billion dollar hits.
The article goes on to discuss MicroVision, Inc. (NASDAQ: MVIS), BlackBerry Limited (NYSE: BB), Upstart Holdings, Inc. (NASDAQ: UPST), Health Equity, Inc. (NASDAQ: HQY), Chewy, Inc. (NYSE: CHWY), Ford Motor Co. (NYSE: F), DocuSign, Inc. (NASDAQ: DOCU), Tesla, Inc. (NASDAQ: TSLA), Advanced Micro Devices, Inc. (NASDAQ: AMD), and Intel Corp. (NASAQ: INTC)
Two that grab our attention right off the bat are:
Health Equity, Inc. (NASDAQ: HQY)
Chewy, Inc. (NYSE: CHWY),
Health Equity (NASDAQ: HQY), was founded in 2002 and has remained laser-focused on a singular mission; to empower working Americans to gain more choice and control over their healthcare and financial future.
Down 57% in 2021
Short interest: 3.73% of the Float
Chewy, Inc. (NYSE: CHWY) besides pet food, treats, and supplies provides pet medications and other pet-health related products for dogs, cats, horses and other animals.
Down 55% in 2021
Short Interest 18% of the float.
Where is the next short squeeze coming from, and how can you find it?
First and foremost, there obviously has to be a sizeable, short position in the stock, relative to the average trading volume.
Next, it would help if it was in a sector what would sit comfortably with the WallStreetBets and other online communities that have been pushing these stocks to the point of a squeeze. The WallStreetBets crew is made up of those who detest the Wall Street elite, short sellers, and those who they believe created the 2008 crisis. Furthermore, they have over 11.3 million followers. To put this into perspective, Goldman Sachs (NYSE: GS), has about 3 million customers. Now ask yourself, what do many of these individuals have in common? Aside from just Crypto and Technology, they look for highly shorted companies by which any new long interest could cause a buying frenzy.
Has the stock been beaten down? Is the stock entering an uptrend? These are the obvious ingredients to a short squeeze. A bonus would be some confirmation that an insider also felt so the stock was undervalued, that he would put his own money on the line.
Here is one you can look at.
Take a look at PetVivo Holdings, Inc. (NASDAQ: PETV), and ask yourself if you can we check any of those boxes?
PetVivo (NASDAQ: PETV) is a veterinary biotech and biomedical device company primarily engaged in the business of translating or adapting human biotech and medical technology into products for commercial sale in the veterinary market to treat companion animals such as dogs and horses suffering from arthritis and other afflictions.
Average 12 month volume is under 100,000 shares and according Marketwatch.com, short interest as of recent was just shy of 200,000 and over 3% of the Float. Check.
Like the two we singled out above, PetVivo Holdings, Inc. (NASDAQ: PETV) is engaged in biotech, healthcare, and the pet industry, and is in a space that has been down over 82% in 2021 according to one of the most havily traded biotech ETF’s (LABU) Check.
PetVivo (NASDAQ: PETV) stock has been beaten down from $11.00 per share in July, to a low of just over $2.00 or just under 80%. The stock put in a bottoming tail and has been on a strong uptick with its next resistance level of just over $5.00 per share, which a squeeze can easily break. Check.
While we’re at it, how does the CEO feel about the company? Remember, all these short squeezes started with some new positive catalyst in the market. It turns out, Mr. John Lai, CEO of Pet Vivo is the largest shareholder at approximately 10% of the near current 10 million shares outstanding.
PetVivo Holdings, Inc. (NASDAQ: PETV) could very well become the next major short squeeze.
As one of the very few pure-play biotech companies for the companion animal market, competition to invest in this company could become fierce.
The Company recently listed on the NASDAQ and raised approximately $11,254,000 from a registered public offering which closed August 13, 2021. Further, PetVivo Holdings, Inc. (NASDAQ: PETV) finished its last quarter with over $8.8 million.
They are currently using the proceeds from their offering to expand their sales and marketing efforts to gain veterinary acceptance and generate revenue from the sale of Spryng.
PetVivo has a pipeline of seventeen products for the treatment of animals and people. A portfolio of twenty-one patents protects the Company’s biomaterials, products, production processes and methods of use. The Company’s lead product SPRYNG™, a veterinarian-administered, intraarticular injection for the treatment of osteoarthritis in dogs and horses, is scheduled for expanded commercial sale in the fourth quarter of this year.
Just two months ago, Think Equity initated coverage on the stock with a $7.00 price target.
Think Equity in Summary stated the following:
“The company received net proceeds of $9.8 million from the capital raise in August. We expect the company to step up marketing to support the product rollout. At the forecast cash burn, the current cash position of $8.5 million should support operations through third calendar quarter of 2022.
We forecast revenues to grow from $0.3 million in FY 2022 to $12.0 million by FY 2024. We are modeling gross margins to expand from 11% to 65% over the same period. We expect EBITDA to improve from $(3.7) million in fiscal 2022 to $(2.4) million in 2024.”
The global veterinary surgical instruments market is estimated to reach USD 1,029.0 million by 2021 from USD 748.4 million in 2016, grow at a CAGR of 6.6% during the forecast period as reported by Research and Markets.
The companion animal osteoarthritis market in the United States is estimated at $4.4 billion, growing at about 7% annually. The market size only represents dogs and horses, as the company’s treatment currently is for dogs and horses. The company expects a feline product within six months that expands the available market.
Motley Fool recently discussed two veterinary companies. They named Trupanion (NASDAQ: TRUP) as a stock that could turn a $25,000.00 investment into $1 million or more, and it also recently reported that Idexx Laboratories (NASDAQ: IDXX), is up almost 34% year to date and at an all-time high after the acquisition of ezyVet earlier this year
PetVivo Holdings, Inc. (NASDAQ: PETV) is a company you need to look at if you want to capitalize on growth in the space, or be part of what could be a major short squeeze.
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