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.
