welcome to the short squeeze channel thanks for joining me today and i really appreciate you
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right away when i do post the video these videos are going to be coming out more often
and today without further ado we will be covering big five sporting goods corp
bgfv on the nasdaq and as you can see we're up about five percent to 33.51 currently and i've
had my eye on this for a while obviously it's been on the top shorted stock list for a while
and i kind of took a wait-and-see approach because there were other
more explosive plays according to the ortex numbers but this is something that you can't
ignore so we're going to be covering this today so big five sporting goods corporation is a sporting
goods retailer in the western united states the company is operating approximately 430 stores
and an e-commerce platform it provides a full-line product offering in a traditional sporting goods
store format that averages approximately eleven thousand square feet its product mix includes
athletic shoes apparel and accessories etc etc etc so a lot of you on the west coast are familiar
with this it's a sporting goods chain i'm in los angeles so they do have these all over the place
it is traditional brick and mortar and now as you can see they're expanding to e-commerce
so this is probably why a lot of the hedge funds started shorting the stock once coveted uh 19 hit
they foresaw this going down similar to gamestop which was also brick and mortar blockbuster which
went out of business they shorted it to death toys r us they shorted it to death so this perfectly
fit their profile as far as a vulnerable company to a to short attack so they've been they've been
short attacking it and retail you caught wind of this and they've actually slowly been accumulating
it hasn't exploded yet so this is why i'm covering it this is an accumulation period so let's quickly
look at the basic numbers here we have a market cap of about 750 million dollars 22 million
shares outstanding so it's a low float which makes the short squeeze uh potential more
likely there's not a lot of shares so the price fluctuations can swing with not a lot of buying
with not a lot of volume and you can see the 52-week high 37.75 52-week low 5.21 cents so
this company falls right in line with our target short squeeze companies now let's look over here
the news there is a lot of news coming out about this company seeking alpha big five sporting goods
jumps on short squeeze chatter 2021 is the year of the short squeeze and big five sporting goods
could be next so as you can see there is a lot of news on this stock again which is always positive
as far as the short squeeze is concerned we're going to look at the institutional
ownership really quickly they have 257 institutional owners that's a large amount
and let's actually look at some of these companies vanguard they have over half a million shares
that's huge vanguard obviously one of the largest funds out there one of the most reputable funds
out there and they don't they not only have it in one fund they have it in multiple funds three
hundred thousand in this other fund that they have the extended market index fund and a few
others sixteen thousand here in the index fund seventeen thousand in the institutional fund
so let's scroll down here and look some more 28 000 right here in this fund
and i'm looking for larger larger numbers here 58 000 in this fund it's a small
cap fund and then obviously close to half a million in the russell 2000 etf
so there is wide institutional ownership and moving on stocks with the most short sale
positions as of august 31st so this is pretty pretty recent obviously just a couple of days
and according to the numbers a tyrion is at number one a t e r which i will be covering next week
big five sporting goods bgfv number two on the list at 39.42
and then obviously we have workhorse at number three so these are the top three 38.33 i may
be covering workhorse at some point but not at the moment there's more urgent companies i feel
but feel free to do your research if you'd like now moving on if we look at the chart
right here this is where the move the accumulation started happening we were
at about 24 and this was last week august 27th august 30th steady and then the volume
came in as you can see here on the bottom and then we jumped up from 24 on the 30th and
it jumped all the way to 29 so about a 10 move in that one day we traced a little bit down here
and back up accumulated back up right here now we sit at where we are right now about 33
34 dollars so this has been an accumulation phase consolidation right here in between and then again
accumulation so that means when you see volume like this it usually is indicative of big money
coming in so while it's quiet and people have their eyes on other plays such as support.com
bbig institutional money what they do is they lurk in the background and they'll be accumulating
the next to blow companies or the next companies that have potential to to make big run-ups
and these are the times that i like to accumulate you don't want to be
chasing the market you don't want to be buying support um you know during the gamma squeeze
or after the fact hoping that it'll squeeze again unless it retraces to a good number and hits your
price target that's not when you want to be buying so in other words you don't want to be buying when
retail is buying okay there's something called the odd lot theory in investments and what that means
is when everybody or the public buys sell when the public sells buy and it sounds counterintuitive
but in a nutshell what that means is follow the big money follow the whales follow the
institutions because you got to think they know what they're doing they're privy to all of the
important data way before retail gets their hands on it okay so you never want to be chasing you
don't want to you don't want to succumb to those psychological tics and and and those feelings of
fomo that that every human being gets just know whenever you feel that anxiety that's
when you don't want to invest so again these are the times you want to be accumulating look
24 quiet no volume nobody's watching it at this point it was still on the top shorted list right
but retail didn't make their move and then right here the institutional buying kicked in
if you could have gotten right here that's ideal right at these levels as soon as you
see these first big green candles right after this series of volume bars right here right
but that's in a perfect world but this should be a sign look for these big volume increases
right that's when you know institutional money is pouring in and if you do that 9 out of 10 times
you'll be more successful right you don't want to follow retail you want to follow institutional so
with that being said even right now at these levels in my opinion it's not a bad time to enter
it's still not too late obviously you know you want to get in at 30 that would be a better level
and take what i'm saying with a grain of salt it's for entertainment purposes only i'm not a
financial advisor and this is not financial advice this is just what i see and what i may do or may
or may not do so again i'm still watching and i'm waiting for a little bit of a dip
we're right now at thirty four dollars 33 and change so at about 30 i may be a buyer
or i may look at the options and probably enter a few option place to hedge my other
place so moving on speaking of options let's look at the september 17th 17th calls we have
only thirty five dollars which is out of the money this blue means that it's in the money meaning the
stock is already at that price i don't like buying in the money calls because they're expensive
six dollars and seven cents six dollars that would mean basically six hundred dollars for
the contract and that's a little um rich for my blood four hundred thirty dollars that's a little
bit more reasonable for the 35 dollar strike so if you think the stock will hit at least 35
by the 17th which is in a few weeks you can go ahead and lay down 430 dollars for a contract
to hold 100 shares of this and i think this potential obviously is well within
the limits we're already a dollar away so this is something that i may look into if
it does get a little bit cheaper as you can see we're up close to 10 percent on the day
so yesterday was probably at three and change so i'm going to keep a close eye on this if
you look a little bit out of the money october 15th you see these are in the money up to 30
and they have a lot more options here up to 50 which is a little bit more reasonable
cents which would be 265 dollars for the contract so you're betting that it would hit 50 at least by
october 15th for a cost of 265 dollars to 300 depending that's a little bit more reasonable so
feel free to go ahead and check on yahoo for these options and even if you're not playing options it
gives you a good idea of the interest in the company in general not just options contracts
because as you can see over here open interest oi what that means is how many contracts are already
purchased so we have a thousand here at 25 2800 here at 29 thousand one hundred forty eight here
at thirty nine dollars and then obviously at fifty dollars we have a pretty big amount of interest
two thousand four hundred thirty seven so this gives you an idea of the interest in the company
and what prices people think it's going to hit and more importantly if you see a huge number
hypothetically let's just say we saw 21 000 instead of 2000 here at 39 that would tell you
that an institution is betting heavily on options or a whale both of which is a good sign for you
because again these people are privy to better information and they get the information
quicker than us retail investors do so this is always something good to look at now moving on
we're going to look at ortex the utilization is at 90 percent which is up about 3.74
percent uh that's a good sign we're getting up there in the numbers it's it's very high right now
obviously if you're at 100 that's ideal but it's not a perfect world but that's still a good number
cost to borrow 14.92 this is the most attractive thing that i see as far as big five right now
it's uh close to 200 percent change five dollars and 37 seven days ago and we're currently close to
triple that so that's it that's a fantastic number uh it's costing hedges a lot of money to hold
hold these shares and the days to cover six days this uh you want it to be lower they do have time
to cover and it increased again which is why i'm also waiting on the sidelines you want to see this
go down and when it goes down then it'll put me closer to pulling the trigger on this trade now
shares on loan we have 8.54 currently which is a change of 30 that's a very good sign and the
free float on loan percentage currently we have 42 percent this is also good we're up 30 percent
and the estimated short interest percent of free float and we're at over 70 so these are these are
fantastic numbers here these are fantastic so we're going to move on from the ortex
onto yahoo so here's here's the secret weapon here or or the the cherry on top so to speak
bgfv is increasing its dividend to 25 cents per share now
if they're giving a dividend they're profitable from what i understand they have little to no debt
okay that's the difference between this and amc amc was just heavily laden with debt before they
offered a lot of shares after their stock increase and they were able to cover some of it but they're
still drowning in debt right gme was drowning in debt but after ryan cohen became the new chair
they slowly whittled away that debt but big five before the retail interest on on the short squeeze
you know uh grew there they are very profitable they already have no debt so it shows you it's a
well-run company and that's the main thing no matter how much a company makes if the company is
not well run and it's run by a bunch of schmucks who sniff coke and buy buy you know prostitutes or
pay for prostitutes it's not gonna it's not gonna go well okay so big five is the antithesis of
that it's a well-run company little to no debt and they're already giving a dividend which is always
a good sign the dividend yield is seven point three percent which is above the industry average
it's very a very good good rate for dividends and more importantly now here's the kicker
when a company gives a dividend it's harder if not next to impossible to make it short or synthetic
sell the shares because each share is accounted for due to its dividend so the dividends have to
be tracked and they're only paid to actual shareholders so that's also why if i don't
know if you've heard but gme was talking about possibly giving a dividend or an nft dividend
what that would do is that it would make each and every legitimate share accounted for which would
expose the naked shares or the illegal illegal short shares right and that's why they wanted to
do that so big five is already giving a dividend which makes it difficult for the hedge funds to
naked short this company so that's the main reason that this is on my on my radar and will be in my
portfolio once it hits the price targets that i'm looking at so keep that in mind you can share this
information or keep it to yourself because this is not something that a lot of people know or
think about right so again you want to get in early don't tell people until after you get in
so this is some information on naked short selling it's investopedia obviously this is a great source
of information for everything stock so if you're not too familiar and comfortable with what naked
short selling is i definitely advise you to look at this article just google this title
right here i'm not going to read the whole thing due to time constraints but this gives a very
detailed and brief simple explanation of short selling and naked short selling failure to the
delivers as well excuse me and this is something that you have to understand if you're making
these short squeeze plays so definitely do that and again remember this is not financial advice
nobody has a crystal ball these are just my opinions from what i see
um if i can put something on your radar that previously wasn't there then i've done my job
of of entertaining you and informing you and that's what i'm here for i'm not your
financial advisor so feel free to look at this information and one more thing tomorrow
friday what i'm gonna do is i'm going to briefly cover the current or text numbers on all of the
stocks that i covered for the week just to give you an update on where the numbers lie because
keep in mind ortex can or cannot lag one or two or possibly even three days the information you
see could have been from a couple of days ago so again every friday i'm gonna update you on the
current or text numbers for the companies that i covered for the week so keep your eye out for that
as well as covering a new company that i haven't before so tomorrow will be two videos for you guys
and i truly wish you the best in the market and have a fantastic day again thanks for joining me
you