Squeeze candidate, SmileDirectClub grins widely in 2-day rally

SmileDirectClub

06/10/2021 20:52

** Shares in heavily shorted SmileDirectClub  SDC.O  up 12.7% at
$6.62 after rising as high as $6.72, on track for a second
straight day of gains with users of social media focusing on the
stock and short selling expert saying bearish investors may be
forced to cover their bets 
    ** After also rallying on Tuesday, SDC on track for two-day
gain of ~27%, its biggest two-day rally since Jan. 26, as the
stock seemed to gain some support after nearing the $5 mark on
Monday, which had been its lowest level since late August  
    ** S3 Partners says SDC is among its top candidates for a
short squeeze with 37.9 mln shares, or 36.3% of its float with a
stock borrow fee of 60%-90%
    ** "There is very little stock borrow supply left on the
street, severely limiting any new short selling in size," says
Ihor Dusaniwsky, MD for predictive analytics at S3
    ** So, he said, high pct of float shorted and high stock
borrow fees "make it a likely Squeeze target due to lack of
stock borrow supply" and with "recent mark-to-market losses the
stock even becomes more squeezable."
    ** "Look for shorts to begin exiting their trades as they
post big red mark-to-market loss numbers in the P\L statements
while paying some of the highest stock loan rates for any short
on the street," Dusaniwsky said
    ** Meanwhile, trading volume approaching 36 mln shares on
Wednesday
    ** On Stocktwits.com social media site for investors SDC was
one of the top trending stocks
    ** SDC had no new announcements in evidence on its website
on Wednesday but announced https://investors.smiledirectclub.com/news-releases/news-release-details/smiledirectclub-allowed-new-patent-innovative-smilebus-concept
 on Tuesday that the United States Patent & Trademark Office
(”USPTO”) will issue a patent on the Company’s innovative
SmileBus concept, which launched in US in 2018, and UK in 2020

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com; +1 (646) 223 6186; Reuters
Messaging: sinead.carew.thomsonreuters.com@reuters.net))