Is This The Dumbest Person On Wall Street Bets?
While scrolling through the filth and scum of Wall Street Bets, I am certain I may have found one of the dumbest individuals to exist.
Going by the really original name “robinhood69”, this guy apparently became a millionaire holding GameStop (“GME”) in its rapid rise to over $130/share. However, the user commented that he lost $400,000 from the top so he is no longer a millionaire.
In my humble opinion, “robinhood69” should have bailed when he hit a seven figure net worth and not get too greedy.
What Is The Next Hot Wall Street Bets Stock?
It appears as if Koss Corporation (“KOSS”) could be the next hot Wall Street Bets stock.
The stock had a monster move today, rocketing up 80% to $6.00 per share. And in the post-market after trading session the stock is currently up a gorgeous 65%.
What makes Koss Corporation interesting is the business model. According the the company, Koss manufactures, designs and sells stereo headphones for compact discs (you know CD players).
Not only is Koss the perfect “dying” industry pump and dump waiting to happen, but the pump has already started with “famed” investor (not really) Will Meade on his personal Twitter account.
On January 22, 2021, Will Meade highlighted Express Holdings (“EXPR”) a distressed retail play where he claimed the stock is the next GameStop (“GME”) and set a price target of $10.00 per share from its share price at the time of $1.18. For those who didn’t watch the Express rocket ship, it was up 131% to $4.15 today at the close.
Based on the intraday and post-trading day movements in Koss, and coupled with the pump by Mr. Meade himself, I would find it highly likely Koss could see a significant amount of shares traded over the next couple of weeks. And if Wall Street Bets finds out about this micro-cap company that appears to be in a dying industry, WATCH OUT.
What We Are Watching
As a die hard value investor there is a sea of “left for dead” companies to pick from due to the ongoing pandemic.
There are an attractive list of “post-pandemic” trades that seem to be setting up nicely if and when the COVID-19 virus is destroyed. Right now I am digging into the following industries:
Traditional energy (oil and gas) and service companies
Commercial real estate
Almost all of these industries are trading way below pre-pandemic levels. An astute investor with a knack for fundamental analysis could do extremely well cherry picking companies that will survive the pandemic and thrive during the upside. If you are new to the game of value investing, I would suggest looking through list companies that have adequate liquidity, low to no burdensome covenants and potential to generate meaningful free cash flow in the future.
To end this, AMC Entertainment (“AMC”) has been a Wall Street Bet “hot stock” for quite some time due to it’s high short interest, an industry that is perceived as “dead” and the potential for the stock to go bankrupt. However, we compiled a list of movie theatre stocks with a higher short interest than AMC that could get picked up by Wall Street Bets and their merry group of degenerates.
Invest at your own risk. Carpe Diem.
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