Short-squeeze stocks are gaining a lot of popularity among retail investors, especially those who are active on Reddit (NYSE:RDDT). Of course, it’s impossible not to mention the “Roaring Kitty” phenomenon, which caused many heavily-shorted stocks to become big winners overnight. The short-squeeze craze we’re seeing now has been long in the making. The market has seen a stellar rally that has surpassed the 2021 rally in many aspects. As such, we’re seeing more and more investors pile into riskier
Retail investor interest in short squeeze stocks has grown considerably since the “meme stock” phenomenon of 2021. However, a stock doesn’t need to gain the “meme king” popularity of a GameStop (NYSE:GME) or an AMC Entertainment (NYSE:AMC) to become a profitable squeeze trade for investors. In many situations, all it takes is two things. First, a high level of short interest. What constitutes high short interest? Think 20%, 30%, 40%, or more of outstanding float sold short. Second, to trigger a
White Brook Capital Partners, an investment management firm, released its first quarter 2024 investor letter, a copy of which can be downloaded here. White Brook Capital Partners returned 3.26% compared to 9.96% for the S&P Midcap 400. In Q1, the AI sector boosted the S&P 500 and Nasdaq, continuing a previous trend. However, the release […]