Fisker Short Squeeze
I've been thinking all weekend about short squeezes and what Fisker could do to trigger one...it goes without saying the company needs to deliver Fisker Oceans to customers, but Fisker could trigger a short squeeze well before then...
Short squeezes are typically triggered either by unexpected good news that drives a security's price sharply higher or simply by a gradual build-up of buying pressure that begins to outweigh the selling pressure in the market.
I gave some examples earlier this week in an article, but had a couple more I wanted to share.
- Insider buying (including founders and executives)
- Announce a new strategic partnership
- Take on a strategic investment
- Release new IP
- Reveal PEAR early
- Announce Project UFO
- Announce manufacturer for Fisker Platform 3
A couple new ideas...
1.) Fisker could announce a share buy back. How about a $250 million buy back or something substantial? That would catch everyone off guard. Yes, it sounds counterintuitive to a company selling shares at-the-market to fund operations, but it does three things. First, it says we believe our shares are undervalued. Second, it shows the company can dip well below the current cash or cash equivalents of $800+ million. Third, that purchase size would be 25 million shares at an average of $10/share which would be about 5 times the average daily volume of shares traded. This would surely raise the share price and could trigger a short squeeze at which point the company could sell some shares at a much higher share price to fund operations.
2.) Currently, of the Top 10 mutual funds holders of Fisker shares, only one is an ESG related fund that being the Invesco ETF Tr-Invesco Wilderhill Clean Energy ETF. According to Yahoo Finance, this fund holds nearly 1% of outstanding shares. Fisker could begin marketing its shares to ESG funds to get more institutional ownership. By marketing, I mean knocking on doors, making phone calls, and presenting to fund managers.
What ideas do you have for the company?
Let's brainstorm... What else could Fisker do to trigger a short squeeze?
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🌊 Ocean One #0469 | Night Drive | Black Abyss Plus | 22” F3b SlipStreams
The biggest thing Fisker needs to do for a short squeeze is to deliver cars to customers. Once they can prove they can get production up and cars delivered, the stock will appreciate and squeeze the shorts. For that, I see the short squeeze happening 6-9 months from now (but that was not a choice listed).
🌊 Fisker Ocean One | Mariana | Sea Salt | 20” F7 AeroStealth | 7/8/22 Preorder
🚗 '18 Tesla Model 3 LR RWD | '21 VW ID.4 Pro S AWD || 🌞 22 SunPower X22-360 Panels - 7.92 kW System
I would love to see a short squeeze in the next 30 or so days, but agree with @ttrinchi that it will likely be mid to late next year, or possibly 2024, hopefully with a gradual rising glide path on the way. Maybe there's some announcement Henrik can make, but I suspect it will be a combination of deliveries, clarity on margins, and path to profitability. Right now, few in Wall Street seem to look at Fisker as viable a couple years down the road (I disagree!) so ultimately it comes down to what changes that mindset and the impression shifts from bankruptcy watch to a real growth story.
Well... obviously seeing the PEAR early did not do it. Pear video out - stock down 5.5% at this writing. Fickle market.
Stock market is based in anything but reality.
Will I get my Fisker One delivered before my VW needs its 100K service?? The race is on..
and…… will we still get the $7500 tax credit? Only HF knows…