Month: October 2023

Top 6 NASDAQ Short Squeeze Play Stocks

by Fred Fuld III

On May 11 of this year, I posted an article about NYSE short squeeze stocks, and pointed out Carvana (CVNA). In less than a month after the article was posted, the stock doubled. The stock is still up over 145% since then.

Another stock that was mentioned was Wayfair (W), which increased by almost 43% in one month.

A short squeeze is a phenomenon that occurs in financial markets when investors who have sold shares of a stock short (i.e., betting that the stock price will fall) are forced to buy those shares back at a higher price than they expected. This can happen when the stock’s price rises sharply, causing losses for short sellers who need to buy the stock to cover their position and limit their losses.

As more and more short sellers try to buy the stock to close out their positions, this increased buying activity can drive the stock price even higher, creating a feedback loop that can lead to a rapid and dramatic increase in price. This can create a challenging situation for short sellers, who may be forced to buy back the stock at a loss, or risk even greater losses if the stock continues to rise. A short squeeze can also create opportunities for long investors who have purchased the stock, as they may be able to sell their shares at a higher price to short sellers looking to cover their positions.

The stock with the biggest short ratio (days to cover), at 14.3 back then, was Heron Therapeutics, Inc. (HRTX). It rose by 9.5% in three days.

When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.

Short sellers can be profitable, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.

Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:

Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.

Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.

Short Percentage Increase/Decrease ~ This is the percentage increase in in the number of short sellers from the previous month.

The following are some heavily shorted tech stock that may be worth considering.

CompanySymbolShort InterestFloatShort Interest RatioShort % change from previous month
Novavax Inc NVAX49.10%87.57M3.3-3%
Beyond Meat Inc BYND40.70%60.71M12.4-2%
Upstart Holdings Inc UPST38.35%71.13M3.73%
Ebix Inc EBIX35.71%24.25M7.718%
Faraday Future Intelligent Elec. FFIE34.21%17.27M2.242%
Groupon Inc GRPN33.82%16.17M3.60%2%

The second stock on the list, Beyond Meat (BYND) has over 40% of its float shorted, with not much change in short interest over last month.

The short interest ratio is 12.4, which means that it would take the short sellers over 12 days to cover their position, based on recent average volume.

Just keep in mind that just because a stock has good short interest ratios and is heavily shorted, doesn’t mean that the stock will go up, especially in a bear market. Also, stocks that are significantly shorted may be shorted for a reason.

Disclosure: Author didn’t own any of the above at the time the article was written.

Stocks Going Ex Dividend in November 2023

The following is a short list of some of the many stocks going ex-dividend during the next month, which can be helpful for traders and investors interested in the stock trading technique known as “Buying Dividends” or “Dividend Capture.” This strategy involves purchasing stocks before the ex dividend date and selling them shortly after the ex-date at a similar price, while still being eligible to receive the dividend payment.

Although this technique generally proves effective in bull markets and flat or choppy markets, it is advisable to exercise caution and consider avoiding this strategy during bear markets. To qualify for the dividend, it is necessary to buy the stock before the ex-dividend date and refrain from selling it until on or after the ex-date.

However, it is important to note that the actual dividend may not be paid for several weeks, as the payment date can be delayed by up to two months after the ex-date.

For investors seeking a comprehensive list of stocks going ex-dividend in the near future, WallStreetNewsNetwork.com has compiled a downloadable list containing numerous dividend-paying companies. Here are a few examples showcasing the stock symbol, ex-dividend date, periodic dividend amount, and annual yield.

Costco Wholesale Corporation (COST)11/2/20231.020.74%
Citigroup, Inc. (C)11/3/20230.535.34%
Las Vegas Sands Corp. (LVS)11/6/20230.200.84%
Starbucks Corporation (SBUX)11/9/20230.572.41%
Charles Schwab Corporation (SCHW)11/9/20230.252.01%
Paychex, Inc. (PAYX)11/13/20230.893.04%
Johnson & Johnson (JNJ)11/20/20231.193.15%
Discover Financial Services (DFS)11/21/20230.703.33%
Applied Materials, Inc. (AMAT)11/22/20230.320.95%
Goldman Sachs Group, Inc. (GS)11/29/20232.753.68%
Coca-Cola Company (KO)11/30/20230.463.40%

To access the entire list of over 100 ex-dividend stocks, subscribers will receive an email in the next couple days with the full list. If you are not already a subscriber, you can sign up using the provided signup box below. Don’t miss out on this valuable information, and the best part is that it’s free!

Dividend Definitions

To better understand the dividend-related terms, let’s define them:

Declaration date: This refers to the day when a company announces its intention to distribute a dividend in the future.
Ex-dividend date: On this day, if you purchase the stock, you would not be eligible to receive the upcoming dividend. It is also the first day on which a shareholder can sell their shares and still receive the dividend.
Record date: This marks the day when you must be recorded on the company’s books as a shareholder to qualify for the dividend. Typically, the ex-dividend date is set two business days prior to the record date.
Payment date: This is the day on which the dividend payment is actually made to the eligible shareholders. It’s important to note that the payment date can be as long as two months after the ex-date.

Before implementing the “Buying Dividends” technique, it is crucial to reconfirm the ex-dividend date with the respective company to ensure accuracy and avoid any unexpected changes.

In conclusion, being aware of the stocks going ex-dividend can be advantageous for traders and investors employing the “Buying Dividends” strategy. WallStreetNewsNetwork.com provides a convenient resource to access a comprehensive list of such stocks, allowing individuals to plan their investment decisions effectively. Remember to stay informed and consider market conditions before employing any investment strategy.

Disclosure: Author did not own any of the above at the time the article was written.

Taylor Swift is Still Outperforming the Stock Market

by Fred Fuld III

A few months ago, I wrote an article called Taylor Swift Stock Index outperforms the S&P 500. In spite of the market dropping, Taylor Swift related stocks are still outperforming the stock market.

Her Stock Index is up more than 315% over the last ten years versus 20% for the S&P 500.

Taylor Swift is not only beautiful and a great singer, songwriter, and actress, she is also very intelligent, especially in the area of finance.

Did you know that she almost became a celebrity spokesperson for FTX, the cryptocurrency company that was involved in a scandal that involved the arrest of the founder for fraud charges.

Taylor Swift was reportedly offered a $100 million sponsorship deal with the FTX cryptocurrency exchange. However, she ultimately declined the deal after asking FTX representatives a simple question: “Can you tell me that these are not unregistered securities?”

This question was significant because it raised the issue of whether FTX was selling unregistered securities. Unregistered securities are a type of investment that is not registered with the Securities and Exchange Commission. This means that investors in unregistered securities do not have the same level of protection as investors in registered securities.

Swift’s question about unregistered securities appears to have been a dealbreaker for FTX.

In addition to asking about unregistered securities, Swift reportedly also did her own research on FTX before deciding to decline the sponsorship deal. She reportedly read the company’s white paper and spoke to other celebrities who had been involved with FTX.

Unfortunately for those other celebrities, which included Tom Brady, Gisele Bündchen, Steph Curry, Naomi Osaka, David Ortiz, Shaquille O’Neal, Kevin O’Leary, and Larry David, they got caught up in the scandal.

These celebrities appeared in paid advertising campaigns for FTX and promoted the exchange on social media.

In December 2022, a class-action lawsuit was filed against FTX and its celebrity endorsers. The lawsuit alleges that the celebrities engaged in deceptive practices to sell FTX yield-bearing digital currency accounts.

Taylor Swift, as a prominent figure in the entertainment industry, has been sought after by various brands for celebrity endorsements. Three notable endorsements in her career include Coca-Cola’s (KO) Diet Coke, Apple (AAPL), and Coty (COTY).

Swift signed a multi-year partnership with Diet Coke in 2013. She became the face of their brand and appeared in commercials and print advertisements. The collaboration aimed to promote the brand’s message of positivity and refreshment. Swift’s bubbly personality and wide fan base made her an ideal ambassador for Diet Coke, and her endorsement helped raise brand awareness and reach a younger demographic.

In 2015, Swift teamed up with Apple for an exclusive endorsement deal. It started with a public disagreement when Swift criticized Apple Music’s initial policy of not compensating artists during the service’s three-month free trial period. After Apple changed its policy, Swift became an advocate for the platform and released her album “1989” exclusively on Apple Music. She also appeared in commercials and promotional materials for the streaming service, showcasing her influence in the music industry and helping Apple Music gain popularity among her dedicated fanbase.

Coty, a major beauty and fragrance company for the CoverGirl cosmetics brand, partnered with Taylor Swift in 2010 to launch to launch NatureLuxe makeup. The partnership with Coty allowed Swift to expand her brand beyond music into the lucrative world of celebrity fragrances.

These endorsements showcase Taylor Swift’s ability to align herself with influential brands and effectively promote their products. Her partnerships have not only enhanced her public image but have also allowed her to diversify her portfolio and extend her brand beyond the music industry.

I have developed stock indices for many celebrities, such as Gisele Bündchen, which I originally created back in 2007.

Because of Swift’s astute review of endorsements, I thought it would be interesting to see how the stocks of the major companies that she endorsed have done over time, compared to the S&P 500, as measured by the SPY ETF.

She was in the Got Milk? campaign, but obviously, the California Milk Processor Board is not a publicly traded stock. She also promoted L.E.I. Jeans, a brand owned by Nine West Holdings, a privately held company.

So I stuck with the three major companies that she was connected with, Coca-Cola, Apple, and Coty.

What are the results?

I ran the analysis over a ten year period, from July 1, 2013 to July of this year. Over that period of time, the Taylor Swift Stock Index outperformed the S&P 500 by a very substantial amount.

Taylor Swift was up 362.95% versus the SPY, which was up only 221.04%. Just look at the chart to see the difference.

Data Source: Yahoo! Finance: Historical Prices

Maybe one of these stocks is singing your song.

Prices are beginning of month first trading day close, adjusted for splits, dividends, and capital gains distributions. The Taylor Swift Index is a price-weighted index, similar to the Dow Jones Industrial Average.

Disclosure: Author owns AAPL.

Five 3D Printing Companies that Might Print Money for Your Portfolio

by Fred Fuld III

3D printing, also known as additive manufacturing, is a revolutionary technology that allows the creation of three-dimensional objects from digital models. Unlike traditional subtractive manufacturing methods, where material is removed from a solid block, 3D printing builds objects layer by layer, adding material precisely where it is needed. This process enables the production of highly complex and customized shapes that might be challenging or impossible to achieve with traditional manufacturing techniques.

Here’s a breakdown of how 3D printing works:

1. Creation of Digital 3D Model:

The process begins with the creation of a digital 3D model of the object to be printed. This model can be designed using computer-aided design (CAD) software or obtained from 3D scans of existing objects.

2. Slicing the Model:

The digital 3D model is sliced into thin horizontal layers using specialized software. This slicing process prepares the model for printing, generating a set of instructions (G-code) that guides the 3D printer on how to build each layer.

3. Printing Process:

  • Material Selection: Various materials can be used for 3D printing, including plastics, metals, ceramics, and even organic materials. The choice of material depends on the intended application.
  • Printing: The 3D printer starts by creating the first layer of the object on the build platform. The printer nozzle or laser, depending on the technology used, deposits or sinters the material according to the instructions from the sliced model.
  • Layer-by-Layer Building: The printer adds subsequent layers, one on top of the other, adhering to the layer beneath. This layer-by-layer approach continues until the entire object is formed.

4. Post-Processing (Optional):

After printing, the object may require post-processing steps such as cleaning, support removal, surface finishing, or assembly, depending on the complexity of the design and the intended use.

5. Applications:

3D printing finds applications in various industries, including manufacturing, healthcare, automotive, aerospace, architecture, education, and more. It’s used for prototyping, rapid manufacturing, custom medical implants, architectural models, intricate artwork, and even in the production of components for aerospace and automotive industries.

Benefits of 3D Printing:

  • Customization: 3D printing allows for highly customized and personalized designs tailored to specific needs.
  • Rapid Prototyping: Prototypes can be created quickly and cost-effectively, allowing for rapid iteration and design improvements.
  • Complex Geometries: It can produce complex geometries and internal structures that are challenging for traditional manufacturing methods.
  • Reduced Waste: 3D printing is often more efficient, producing less waste compared to subtractive manufacturing methods.

3D printing continues to evolve, with advancements in materials, speed, and precision, expanding its capabilities and applications across various industries.

Fortunately, there are several 3D printing companies to choose from.

Stratasys (SSYS) is a $890 million market cap company, which is a global leader in additive manufacturing, also known as 3D printing. The company was founded in 1989 by S. Scott Crump and his wife Lisa Crump in Eden Prairie, Minnesota. Crump is credited with inventing fused deposition modeling (FDM), one of the most common 3D printing technologies today.

Stratasys sold its first 3D printer, the 3D Modeler, in 1992. The company went public in 1994 and has since grown to become one of the largest and most successful 3D printing companies in the world.

Stratasys offers a wide range of 3D printers and materials for a variety of industries, including aerospace, automotive, healthcare, consumer products, and education. The company’s products are used to create prototypes, manufacturing tools, and production parts.

Stratasys has a long history of innovation in the 3D printing industry. In 2003, the company introduced the Dimension, the first desktop FDM 3D printer. In 2008, Stratasys released the PolyJet 3D printing technology, which enables users to print with multiple materials in a single build.

In recent years, Stratasys has continued to innovate and expand its product portfolio. In 2017, the company acquired MakerBot, a leading manufacturer of desktop 3D printers. In 2021, Stratasys released the J850 Pro, the world’s first multi-material, multi-color 3D printer.

Stratasys is a global company with headquarters in Eden Prairie, Minnesota and Rehovot, Israel. The company has over 3,000 employees and sells its products in over 100 countries.

Here are some of Stratasys’s notable milestones:

  • 1989: Company founded by S. Scott Crump and his wife Lisa Crump.
  • 1992: Stratasys sells its first 3D printer, the 3D Modeler.
  • 1994: Stratasys goes public on Nasdaq.
  • 1995: Stratasys acquires IBM’s rapid prototyping intellectual property and other assets.
  • 2003: Stratasys introduces the Dimension, the first desktop FDM 3D printer.
  • 2008: Stratasys releases the PolyJet 3D printing technology.
  • 2017: Stratasys acquires MakerBot.
  • 2021: Stratasys releases the J850 Pro, the world’s first multi-material, multi-color 3D printer.

Stratasys is a pioneer in the 3D printing industry and continues to lead the way in innovation. The company’s products are used by businesses and individuals around the world to create a wide range of products, from prototypes to production parts.

The stock trades at 31.5 times forward earnings and is selling at 94% of book value. It has almost no long term debt.

Earnings per share growth for next year is expected to be over 120%, with average annual earnings per share growth over the last five years of 10.41%. However currently the company is generating negative earnings.

The stock price is down over 10%for the last 12 months.

Stratasys had been involved in a merger agreement with Desktop Metal (DM), however, the merger was terminated yesterday.

Speaking of Desktop Metal (DM), it is a leading 3D printing company that was founded in 2015 in Cambridge, Massachusetts. The company was founded by a team of experienced entrepreneurs and engineers, including several from MIT.

Desktop Metal’s mission is to make 3D printing accessible to everyone. The company develops and sells a variety of 3D printing systems and materials that are designed to be easy to use and affordable.

Desktop Metal’s flagship product is the Studio System, a desktop metal 3D printer that is ideal for prototyping and small-batch production. The Studio System is easy to set up and use, and it produces high-quality metal parts with a variety of materials.

Desktop Metal also offers a variety of other 3D printing systems, including the Production System for large-scale manufacturing and the Shop System for machine shops. The company also offers a variety of materials for its 3D printers, including steel, aluminum, titanium, and copper.

Desktop Metal has quickly become one of the leading 3D printing companies in the world. The company’s products are used by businesses of all sizes in a variety of industries, including aerospace, automotive, healthcare, and consumer goods.

Here is a timeline of some of Desktop Metal’s key milestones:

  • 2015: Desktop Metal is founded.
  • 2017: Desktop Metal launches its Studio System and Production System.
  • 2019: Desktop Metal launches its Shop System and Fiber printer.
  • 2020: Desktop Metal goes public on the New York Stock Exchange.
  • 2021: Desktop Metal acquires EnvisionTEC, a leading manufacturer of industrial photopolymer 3D printers.
  • 2023: Desktop Metal acquires ExOne, a leading manufacturer of binder jetting 3D printers.

The company is well-positioned to benefit from the continued growth of the 3D printing industry.

It has a market cap of $432 million, and is selling at 97% of bon value. Although currently generating negative earnings, the stock is expected to reduced their earnings per share loss by 59.63% next year.

The stock price is down over 48% for the last 12 months.

3D Systems Corp. (DDD) is a leading manufacturer of 3D printers and materials. The company was founded in 1986 by Chuck Hull, the inventor of stereolithography [SLA], one of the first 3D printing technologies.

3D Systems was the first company to commercialize 3D printing technology. In 1987, the company released the SLA-1, the world’s first commercial 3D printer. The SLA-1 was quickly adopted by businesses and organizations for prototyping, product development, and manufacturing.

Over the years, 3D Systems has developed and released a wide range of 3D printers and materials. The company’s products are used by businesses and individuals in a variety of industries, including aerospace, automotive, healthcare, consumer goods, and education.

3D Systems has also played a leading role in the development of 3D printing software. The company’s software products enable users to design, prepare, and print 3D models.

Here is a timeline of some of 3D Systems’ key milestones:

  • 1986: 3D Systems is founded by Chuck Hull, the inventor of stereolithography (SLA).
  • 1987: 3D Systems releases the SLA-1, the world’s first commercial 3D printer.
  • 1989: 3D Systems releases the SLS-250, the world’s first commercial selective laser sintering (SLS) 3D printer.
  • 1994: 3D Systems goes public on the Nasdaq stock exchange.
  • 1995: 3D Systems releases the SLA-500, the world’s first commercial SLA 3D printer that can print with multiple materials.
  • 2000: 3D Systems releases the ZPrinter, the world’s first commercial color 3D printer.
  • 2006: 3D Systems releases the Cube, the world’s first affordable desktop 3D printer.
  • 2012: 3D Systems releases the ProJet 3500, the world’s first commercial SLA 3D printer that can print with metals.
  • 2014: 3D Systems releases the Figure 4, the world’s first commercial desktop DLP 3D printer.
  • 2017: 3D Systems releases the FabPro 1000, the world’s first commercial desktop FDM 3D printer that can print with carbon fiber.
  • 2020: 3D Systems releases the ProX SLS 6100, the world’s first commercial SLS 3D printer that can print with nylon 12 CF, a strong and lightweight material that is ideal for industrial applications.

3D Systems is a pioneer in the 3D printing industry. The company’s products have helped to make 3D printing more accessible and affordable.

3D Systems has a market cap of $589 million and is selling at 83% of book value. The company, which is currently generating negative earnings, is expected to reduce its earnings per share loss by 30% next year.

The stock price is down over 44%for the last 12 months.

Proto Labs Inc. (PRLB) is a leading digital manufacturing company that provides rapid prototyping and on-demand production services. The company was founded in 1999 by Larry Lukis, who wanted to make it faster and easier for businesses to get custom prototypes and production parts made.

Proto Labs was one of the first companies to offer rapid prototyping services online. The company’s website allows users to upload their CAD files and receive an instant quote for prototyping or production services. Proto Labs also offers a variety of online tools to help users design and optimize their parts for manufacturability.

Proto Labs offers a wide range of manufacturing services, including injection molding, CNC machining, and 3D printing. The company’s services are used by businesses of all sizes in a variety of industries, including aerospace, automotive, healthcare, consumer goods, and electronics.

Here is a timeline of some of Proto Labs’ key milestones:

  • 1999: Proto Labs is founded by Larry Lukis.
  • 2001: Proto Labs launches its online platform for rapid prototyping services.
  • 2005: Proto Labs opens its first European facility in Telford, England.
  • 2009: Proto Labs opens its first Asian facility in Osaka, Japan.
  • 2012: Proto Labs goes public on the Nasdaq stock exchange.
  • 2014: Proto Labs launches its 3D printing services.
  • 2016: Proto Labs opens its new global headquarters in Maple Plain, Minnesota.
  • 2017: Proto Labs acquires Rapid Manufacturing, a leading provider of CNC machining services.
  • 2021: Proto Labs acquires Hubs, a global online manufacturing platform.

Proto Labs is a $686 million market cap company that is trading at a very reasonable 16.65 times forward earnings. Growth of earnings per share next year is expected to be 16.04%.

The company has no long term debt and the stock is trading right at its book value. The stock price is down over 27%for the last 12 months.

Velo3D (VLD), a leading metal 3D printing company founded in 2015, develops and sells metal 3D printers, software, and materials that are designed to be easy to use and affordable.

The company’s flagship product is the Sapphire, a laser powder bed fusion [LPBF] metal 3D printer that is known for its ability to print complex geometries with high precision and repeatability. Velo3D also offers a variety of software and materials that are specifically designed for the Sapphire printer.

Velo3D’s customers include businesses of all sizes in a variety of industries, including aerospace, automotive, healthcare, and consumer goods. Some of the company’s notable customers include SpaceX, Honeywell, and Lam Research.

It is a rapidly growing company with a bright future. It is well-positioned to benefit from the continued growth of the metal 3D printing industry.

The company’s mission is to make metal 3D printing accessible to everyone. Its products and services are designed to make it easier and more affordable for businesses to produce complex metal parts with 3D printing.

Velo3D’s technology is having a significant impact on the manufacturing industry. By enabling businesses to produce complex metal parts with high precision and repeatability, Velo3D is helping to reduce costs, improve quality, and accelerate product development.

The company is in partnership with Elon Musk’s SpaceX, and Cathie Wood, the CEO of Ark Invest, recently invested $1.8 million in the company on September 27.

The stock has an extremely low market cap of $309 million, so should be considered very speculative. The company is currently generating negative earnings, however, annual revenue growth over the last five years was 109%. Quarterly revenue growth year-over-year was 27.95%.

Low Market Caps

You will notice that all these stocks have low market caps, less than $1 billion. Therefore, they should all be considered extremely speculative. Do your own due diligence, and maybe one of these companies can print a successful return on your portfolio.

Disclosure: Author didn’t own any of the above at the time the article was written. All these stocks have very low market caps and should be considered extremely speculative. Photo Source: cdc.gov