Author Topic: Short Squeeze or the Real Deal?  (Read 777 times)

Rob L

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Short Squeeze or the Real Deal?
« on: December 01, 2020, 06:55:21 PM »
LC stock has been on a tear since putting in an opening low on 10/29 of $4.42. It was the third time it tested lows in that area.
They announced earnings after the close on 11/4. The stock had moved upwards to $5.55 into the close before earnings were announced.
The day after earnings were announced (11/5 Thursday) the stock was essentially unchanged on very heavy volume.
The next day 11/6 it was hammered back down to $4.99.
Before the open on Monday 11/9 Pfizer announced terrific results of their clinical vaccine trials and everything went up, including LC to $5.60
Things went sideways until 11/18 when LC soared up inexplicably on very heavy volume to close at $6.53.
On 11/20 it closed above its 200 day simple moving average $6.50.
It's been more or less straight up since then and LC closed today at $8.22 on heavy volume, up 86% from the low cited earlier.
However, closing at the low of the day today that saw a high of $8.68 should make tomorrow interesting. I have found absolutely no explanative LC news.
The message is either shorting in a bull market is dangerous or LC has better prospects ahead?
For the record I am neither short nor long, just an interested bystander.


macroman7799

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Re: Short Squeeze or the Real Deal?
« Reply #1 on: December 08, 2020, 02:08:43 AM »
I think the thing that you're missing is that the market likes the shutdown of the retail platform. It's a cost center that wasn't generating enough volume to justify itself. I really don't think that there is any definitive evidence that LC has turned the corner though.