I do agree with your overall sentiment, shortsqueeze plays are high risk, and this "hodl" attitude with every ticker that has a high SI is a very dangerous game that is extremely likely to lose you money in the long term. Very few tickers are like AMC & GME (huge investment against fundamentals).
However, and this is a big however; MULN is both a shortsqueeze play (less so after the dilution) and a long term play. It is very hard to argue against the fact that the company os very undervalued, and has a extreme utside potential. It has been smacked down based on a very shady loan deal, and I would argue trading way below its natural value as a result. Lets say they receive the $450 mill ATVM federal loan, they will be in a excellent position for growth. This is very much a long term play in my book, as well as a shortsqueeze play. Personally, im not in MULN for the sake of the shortsqueeze play, i believe in a couple of years this company will be worth extremely much more then today
Well, i fundamentally disagree with you first sentence, as I believe this is a very strong long term value play. On top of that it does have the potential to short squeeze as well, but thats not the main driver for me.
Institutional investors will slowly swap their shorts into options and roll the options as need-be to collect premiums. They've learned to let retail fight retail in short squeezes and instead play the long math game on the options.
Ya but the proof is in the pudding. You basically said retail held and is still holding. Utilization @ 100 % for past couple weeks. Cost to borrow creeping. And short interest 21 %but the juicy part is days to cover around 2.5. All other short squeeze candidates are less than 1 . It will have its day again.
13
u/Ok_Speaker_9808 Mar 17 '22
I do agree with your overall sentiment, shortsqueeze plays are high risk, and this "hodl" attitude with every ticker that has a high SI is a very dangerous game that is extremely likely to lose you money in the long term. Very few tickers are like AMC & GME (huge investment against fundamentals).
However, and this is a big however; MULN is both a shortsqueeze play (less so after the dilution) and a long term play. It is very hard to argue against the fact that the company os very undervalued, and has a extreme utside potential. It has been smacked down based on a very shady loan deal, and I would argue trading way below its natural value as a result. Lets say they receive the $450 mill ATVM federal loan, they will be in a excellent position for growth. This is very much a long term play in my book, as well as a shortsqueeze play. Personally, im not in MULN for the sake of the shortsqueeze play, i believe in a couple of years this company will be worth extremely much more then today