10/03/2020
A week ago I published my second post on Almost Seventeen titled “A big short squeeze is coming for Dillard's”. For the ones who missed it, go give it a read.
While Dillard’s, as I previously said, is a “controversial” stock, my thesis underlying this trade was fairly simple: tons of shares sold short; small functional float; company executing aggressive buybacks. The perfect recipe for a big short squeeze.
In fact, a short squeeze is exactly what happened during the last 5 trading days; I’m currently exiting my position at $38 per share for a ~26.0% return on a cost basis of $30.11 (bought in between last Thursday and Friday); that results in an annualized rate of return of ~1200% (!).
Yeah, you read that right. It’s not a typo. I harvested 26%, while the S&P returned .44%. I just wanted to let you know; I’m not bragging about it (ok, maybe a little).
However, a successful investment doesn’t make a successful investor (and besides, who doesn't like to make money?). I’m currently working on a deep-dive analysis of Clipper Realty, Inc. [CLPR], a small-cap REIT focused on the NY residential market. Stay tuned.
Thank you for reading.
Caveat emptor. Do not trust a 16 yrs. old on the internet. Do your own due diligence.