Nice start to the week for me yesterday.
Today I’ve looked at exactly what the fat cats at JP Morgan Chase are looking at.
Today I might initiate a long-term short position in a company which I believe may be fraudulent…
Full Story + JP Morgan’s Twenty Most Intriguing Stocks.
|Ticker Code||Ticker Name||Ticker Industry||Price Change||Average Volume (50)*|
|NIO||Nio Inc – ADR||Auto Manufacturers||34.74%||34,121,618|
|HTZ||Hertz Global Holdings Inc||Rental & Leasing Services||-594.38%||43,256,792|
|LK||Luckin Coffee Inc – ADR||Restaurants||-1232.84%||27,332,112|
|AMZN||Amazon.com, Inc.||Internet Retail||21.10%||4,731,874|
|TWLO||Twilio Inc||Software – Application||55.03%||5,773,533|
|OAS||Oasis Petroleum Inc.||Oil & Gas E&P||30.00%||50,211,082|
|JWN||Nordstrom, Inc.||Department Stores||7.53%||6,997,698|
|O||Realty Income Corp||REIT – Retail||11.86%||3,281,638|
|MARK||Remark Holdings Inc||Internet Content & Information||83.82%||57,376,317|
|CCL||Carnival Corp||Travel Services||21.61%||56,814,977|
|JPM||JPMorgan Chase & Co.||Banks – Diversified||8.69%||23,556,412|
|BBY||Best Buy Co Inc||Specialty Retail||26.45%||2,855,208|
|BYND||Beyond Meat Inc||Packaged Foods||51.98%||11,744,752|
|GSX||GSX Techedu Inc||Education & Training Services||-29.90%||6,296,587|
|AMRN||Amarin Corporation plc||Biotechnology||40.39%||9,869,789|
|INO||Inovio Pharmaceuticals Inc||Biotechnology||49.93%||41,674,232|
|SPT||Sprout Social Inc||Software – Application||45.14%||267,488|
|V||Visa Inc||Credit Services||17.10%||10,111,614|
|NBR||Nabors Industries Ltd.||Oil & Gas Drilling||50.13%||1,200,048|
From time to time in the stock market, companies aren’t always honest with their reporting and wind up getting in a little bit of trouble.
We’ve seen a recent example in the case of Luckin Coffee, the Chinese company which was identified as a fraud in April, and shares plummeted over 50% overnight as a result.
Personally, along with multiple short selling firms, I believe that the next possible Luckin Coffee could be GSX Techedu (NYSE: GSX), which is also a Chinese company.
Many short selling firms have already initiated short positions in this stock itself in anticipation of capitalizing on the stock’s potential crash should the company be proven fraudulent, as Luckin Coffee was.
Given the stock’s short float can often exceed 30% when suspicious press releases are released, the stock is capable of making fast moves to the upside and downside as short squeezes and selloffs alike take place amongst traders.
Given this, I’ve been waiting for the stock to simply pop on a short squeeze, consolidate, and initiate a longer term short position.
After this morning’s pop in GSX, that could happen as soon as this week…
Should GSX remain trading sideways below $40/share, I’ll initiate half of a longer-term short position hold.
In the case of Luckin Coffee, we saw the stock drop from $26/share to $6/share overnight as they were accused of misleading their shareholders.
Another good term for that is fraud.
GSX is rumored to be conducting their business operations with the same practices, and I believe my time to initiate a short position may be right around the corner in anticipation of the stock selling off over the next few weeks, as Luckin Coffee’s did.
Yours for TrackStar trading,
America’s #1 Premarket and Day Trader
Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.