Shares sparkle in heavily-shorted SmileDirectClub
17/09/2021 16:05
** Shares in heavily shorted SmileDirectClub Inc up 12.7% at
$6.76 on track for biggest weekly pct gain of since early May at
31%, making the stock a candidate for a short squeeze
** While SDC is a strong short squeeze candidate, bearish
investors have not been exiting their positions yet, according
to S3 Partners MD of predictive analytics Ihor Dusaniwsky
** About 35.3 mln SDC shares, or 33.81% of the teeth
alignment firm's float, sold short with a 1.20% stock borrow fee
and rising, S3 said
** S3 says shares shorted increased ~1.16 million shares, in
last 30 days with most new short selling (912,000 shares) in the
last week . For the five days ending Friday SDC was on track for
a gain of ~31%
** Dusaniwsky says short selling into a rising market means
short sellers are looking for a reversal of SDC’s recent gains
** SDC on Friday rose as much as 23.7% at its $7.42 peak
early in the session, which was its highest level since July 21.
Trading volume already was 3.7 times 10-DMA
** SDC was the top trending stock on stocktwits.com https://stocktwits.com/rankings
as investors on social media took notice of the stock after it
already rose 5.6% on Thursday
** SDC still down ~40% YTD
(Reporting By Sinéad Carew)
((sinead.carew@thomsonreuters.com; +1 (646) 223 6186; Reuters
Messaging: sinead.carew.thomsonreuters.com@reuters.net))