On June 29, LikeFolio issued a STOCK CHATTER ALERT on Bed Bath and Beyond (BBBY) with the stock trading at $4.99.
We noted shares were down that day, but that chatter around the stock was 83% bullish on chatter levels that were 10x normal volume, and recommended the stock as a longer-term “lotto play”.
Here’s what’s happened to the stock since:
That’s an enormous 439% gain in less than a month.
And it may not be done yet…
So… what gave it away?
Is it their sales?
No – this is a company that Jim Cramer had basically declared DEAD just a week ago.
Is it analyst upgrades?
No… the stock has never been more hated by Wall Street. In fact, the average price target is only $3.49…
So… what is it that has driven BBBY to a 400+% gain in a matter of weeks?
Well actually… it’s two things.
First and foremost, BBBY is the most heavily shorted stock on Wall Street:
With over 47% of the float (number of shares available for trading) sold short, the potential for a short squeeze is massive.
The higher BBBY’s share price goes, the more underwater the short-sellers positions get, the more they’re forced to cover their position by buying more stock.
This demand drives the price even higher, attracting more short-sellers, and the process repeats over and over again, potentially sending the stock to insanely high levels like we saw with GameStop (GME) in early 2021.
Secondly, BBBY is beloved by “meme-stock” traders who specialize in attempting to create short-squeeze opportunities.
We are talking about an “army” of “apes” (their own words here) who band together on social media sites, buying the stock and producing enthusiasm for its prospects via interesting analysis and entertaining memes like this epic video.
So how does LikeFolio find “meme stock” winners like BBBY?
Because of our ability to monitor social media sites (like Twitter, Reddit, and others), we can detect unusual chatter levels around ticker symbols in real-time.
We then combine this with investor sentiment analysis (bullish vs bearish) to get a feel for how enthusiastic investors are getting about a stock.
The icing on the cake comes when that high-enthusiasm stock is also heavily shorted, creating a perfect opportunity for a potential short squeeze to much, much higher levels.
It’s that simple – spot where the crowd is going… and get there first.
We send STOCK CHATTER ALERTSto our members on a regular basis, looking for big profits in a short amount of time on stocks that are getting unusual levels of investor chatter.
Of course, not all of these plays pan out.
But when you catch a winner like BBBY, currently sitting over 400% above our initial entry… well… life is memetastic.