11/19/2023 0 Comments Torchlight stock short interest…a private company buys enough shares to control a publicly-traded company. This would be dodgy enough in itself, given “first-day” returns, as the proceeds of an IPO are known, can be highly exaggerated, but what actually happened was that Metamaterials went public by means of a reverse takeover (also known as a “backdoor listing”) an alternative to an initial public offering (IPO) in which, per Investopedia: The CBC story about Innovacorp’s triumph says the provincial entity made its money when Metamaterials (which already traded on the Canadian Stock Exchange) listed on the Nasdaq, making it sound as though Metamaterials staged an initial public offering (IPO) and investors were so excited by this innovative Canadian tech startup, they drove its market capitalization past $1 billion, the definition of a “unicorn.” If, say, a group of Reddit investors were to drive the price of ACME shares to $100 - in a move called a “short squeeze” - I’d be in deep trouble, as short sellers panicked and started buying the stock to cover their bets, thus driving the price up even more. I return your share and pocket the $5 difference between the selling and repurchase prices. In simple, verging on simplistic terms, if I think the ACME company’s stock is going to lose value, I might borrow your ACME share (for a fee) and sell it for, say, $10, then when ACME falls to $5, buy it back. Investors “short” stocks they think will lose value. (I hear your snickering at that school-marmish definition of your community, Redditers, and I accept it.)Įven those of you who pay no attention to the stock markets probably heard about GameStop, the brick-and-mortar video game rental company that Reddit investors drove to outrageous heights in an effort to force a short squeeze and punish the hedge funds shorting the stock (or make money or both, it’s complicated). How pleased was Innovacorp with itself? So pleased it made a public announcement about the exit, something it doesn’t seem to do when an investment just peters out, as VC investments have a tendency to do.īut is this Innovacorp showing its investment acumen by betting on an up-and-coming startup - or is this Innovacorp profiting from a meme stock?Ī meme stock, for those of you lucky enough not to know, is a stock that gets hyped by social media in general and investors on Reddit, a popular collection of online forums, in particular. Innovacorp, the province’s venture capital crown corporation, has won the VC lottery - it bet $3 million on a Dartmouth firm that makes “high-performance materials used in the defense and aerospace industries” and collected $104 million when that firm went public in the US (it’s Meta Materials NASDAQ:MMAT). Other names that saw elevated levels of short interest included Beyond Meat, SunPower, Sunnova Energy and WeWork. Novavax had about 51% of its free float shares sold short as of the end of September, the largest percentage among stocks in our criteria. LCID YTD mountain Lucid Group shares year to date Lucid shares sold off about 7% on Oct.5 after the company launched a cheaper version of its Air electric sedan in an attempt to boost demand. Short interest reached about 26% of the float in both companies. Short interest in Lucid Group, for example, increased 7.5% to 218 million shares, while short interest in EVgo rose 5% to 25 million shares. A handful of other electric vehicle and charging stocks also saw a jump in short interest during the period. rose more than 7% during the period to roughly 89 million shares and almost 47% of the company's shares are freely available to trade. Here are some of the names that met the criteria: Short interest in Fisker Inc. The search involved looking for companies traded on the New York Stock Exchange and Nasdaq with short interest of more than 25% of their total float and at least $100 million in market cap. CNBC Pro used FactSet data to screen for stocks with the most short interest as of Sept. Investors hiked their short bets on a handful of electric vehicle and charging companies during the second half of September, according to FactSet data. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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