2024

GameStop

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 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
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<p class="has-drop-cap">Following the <a href="https://tokenist.com/2-meme-stocks-to-watch-as-the-gamestop-saga-kicks-off-again/" rel="noopener noreferrer nofollow" class="deco-link">GameStop (NYSE: GME) short squeeze extravaganza</a> over the last month, traders are looking into similar candidates for <a href="https://tokenist.com/investing/what-is-beta-in-stocks/" rel="noopener noreferrer nofollow" class="deco-link">stock volatility</a>. Conditions creating these events are now more pressing. At the end of May, the Energy Information Administration (EIA) reported the lowest seasonal demand level for diesel since 1998.</p>
<p>Given diesel’s prolific usage in trucks and trains, this suggests an economic slowdown, aligning with <a href="https://tokenist.com/us-indices-slide-as-latest-gdp-data-paints-a-worrying-picture/" rel="noopener noreferrer nofollow" class="deco-link">slower GDP growth</a> and slower consumer spending. Conversely, an economic downturn is poised to have a greater effect on companies with weaker fundamentals. Ahead of this, short sellers would bet on their stock prices to fall.</p>
<p>With the potential for market pessimism getting higher, triggering more volatility, which stocks have highest short interest in the short term?</p>
<h3 id="sunpower-nasdaq-spwr-88-66-float-shorted">SunPower (NASDAQ: SPWR) – 88.66% float shorted</h3>
<p>In March, a hailstorm devastated Fort Bend County farm’s thousands of solar panels. This was just one recent instance showcasing the fragility and unreliability of solar power on a mass scale.</p>
<p>In turn, the narrative is shifting towards nuclear power as the cleanest and densest form of energy. Even Larry Fink of BlackRock, having pushed the <a href="https://tokenist.com/investing/esg-investing/" rel="noopener noreferrer nofollow" class="deco-link">ESG framework</a> for years, warned that “the world is going to be short power…you need dispatchable power” in the age of growing data centers for generative AI.</p>
<p>These trends point to de-prioritizing SunPower’s business model, centered around residential solar solutions. The company is scheduled to report its earnings tomorrow, on June 5th. In the last Q4 ‘23 <a href="https://investors.sunpower.com/news-releases/news-release-details/sunpower-reports-fourth-quarter-and-full-year-2023-results" target="_blank" aria-label=" (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">report</a> in February, SunPower exited the year with a net loss of $247 million, depleting its cash reserves to $87.4 million from $123.7 million in a year-ago quarter.</p>
<p>Presently, SPWR stock is holding at $2.97, under its 52-week average of $5.30 per share. This price aligns with the Nasdaq average target of $3.07 per share. Over the last month, SPWR shares are up 27%.</p>
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<h3 id="arbor-realty-trust-nasdaq-abr-43-56-float-shorted">Arbor Realty Trust (NASDAQ: ABR) – 43.56% float shorted</h3>
<p>Normally, a real estate investment trust (REIT) would be a good bet for steady dividend income, owing to the requirement to pay out at least 90% of taxable profits in dividends. Arbor has a dividend yield of 12.22% at $1.72 annual payout per share.</p>
<p>However, if the market downturn is on the horizon, this would translate to a higher unemployment rate, decreased housing demand, increased loan defaults, and ultimately, the fall of housing prices. This would negatively affect Arbor Realty’s bottom line as a multifamily and single-family rental.</p>
<p>Moreover, as of May 28th, 2024, investigative firm Viceroy Research issued another <a aria-label=" (opens in a new tab)" href="https://viceroyresearch.org/wp-content/uploads/2024/05/Arbor-Elevate-Case-Study.pdf" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">dire report</a> on Arbor’s financial status. This includes extended financing to delinquent customers at the firm’s expense. Owing to impairments and delinquency risks, the report concluded with the following warning.</p>
<blockquote class="wp-block-quote">
 <p>“There is no rate cut large enough, no rate caps cheap enough, and no investors dumb enough to save Arbor.”</p>
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<p>However, given that Viceroy Research is a <a href="https://tokenist.com/investing/short-selling/" rel="noopener noreferrer nofollow" class="deco-link">short seller</a>, it may paint such a picture for its own benefit. Over the last month, ABR stock has been up 6.3%. At the present price of $13.83, ABR shares are not far from their 52-week average of $14.11. Nasdaq’s forecasting data puts the average ABR price target in the present range at $13.45 per share.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<h3 id="immunitybio-nasdaq-ibrx-38-02-float-shorted">ImmunityBio (NASDAQ: IBRX) – 38.02% float shorted</h3>
<p>As one of many penny biotech stocks, ImmunityBio received positive news in April following the FDA’s approval of Anktiva for treating non-muscle-invasive bladder cancer (NMIBC). This is in combination with the company’s Bacillus Calmette-Guérin (BCG) vaccine.</p>
<p>In other words, ImmunityBio’s short&nbsp; interest is more related to its borderline penny stock status, and accompanying volatility, rather than on weak fundamentals. From the last in-depth <a href="https://tokenist.com/amid-biotech-pitfalls-this-stock-has-outperformed-nvda-in-the-last-3-months/" rel="noopener noreferrer nofollow" class="deco-link">coverage of ImmunityBio</a> earlier in May, IBRX stock is down 32%, from $8.12 to present $6.15 per share.</p>
<p>Placed into context, IBRX stock is up 62% over the last six months, while down 32% over the last month. Nasdaq’s average IBRX price target is now in sync with the price, at $6 per share.&nbsp;</p>
<p><strong><em>Do you view short selling as too stressful but worth the risk? Let us know in the comments below.</em></strong></p>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/these-3-interesting-stocks-are-seeing-heavy-short-interest-in-june-2024/">These 3 Interesting Stocks are Seeing Heavy Short Interest in June 2024</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

These 3 Interesting Stocks are Seeing Heavy Short Interest in June 2024

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