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$SPRT: Huge Upside Potential, Undervalued at $10

  • u/maschx
  • Aug 20, 2021
  • 2 min read

70% Estimated Short Interest of Float

63% Exchange-Reported Short Interest of Float

15% Short Interest Growth, 60-day (Nasdaq)— Nearly all of SPRT’s accrued short interest has not been flushed out thus far and remains highly shorted compared to its recent past

255% Average Cost to Short

95% Share Utilization Rate

65% Free Float on Loan

$212M Market Cap and 8.5M Free Float (stocks with low market cap and float always have the potential to squeeze more easily)

Has remained on the Nasdaq's Regulation Threshold Security List for 40+ days, a list where the SEC enforces the covering of legal short positions when there are an unusually high numbers of unsettled positions (FTD's)

Phenomenal momentum building up which is necessary to enable the development of a short squeeze while making it ripe for a gamma squeeze

Has gained new support at the recent resistance level of $8.40, and has repeatedly passed recent resistance levels over the course of the past month

Experiencing substantial secular outperformance and divergence from its two sectors, software services and bitcoin-mining

Featured in multiple articles over the past month about potential short squeeze (including one by the co-founder of Ortex)

High visibility in reddit subs like r/shortsqueeze and r/pennystocks

Very substantial amount of institutions (60% of free float) own the stock including big wigs like Morgan Stanley and Citadel, which seemed to rapidly increase their positions in the beginning of July

Has maintained less than 15% total-debt-to-asset ratio for the past five years with the exception of the crypto winter of 2018 (25%).

Catalysts:

—Reverse Merger planned in Q3 with carbon-neutral, energy-independent bitcoin mining firm Greenidge. These two features of the company allow it the cheapest bitcoin mining costs in its industry (5x cheaper than the average competitor) while the carbon-neutrality will attract the likes of institutions concerned about bitcoin’s sustainability issue.

—Bitcoin’s recent price resilience and emergence out of very bearish territory from a technical standpoint

—Announcement of a cryptocurrency and FinTech focused on-demand technical support service that will accept Bitcoin as payment

—Joined the Russell Micro-Cap index recently

—Announcement of subscription-based Homesourcing Cloud Platform, giving home-based experts tools that allow specific solutions for enterprise/direct-to business/and professional service firms.

 
 
 

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