Why Enservco Is A Better Short Squeeze Than GameStop
Conclusion: On a value basis Enservco (ENSV) is worth more than the $10 million market cap it has. It has been around for 39 years and has been down to the $2-4 range 9 times in those 39 years. It has also been to $40 seven times is those 40 years, and once to $117, which is a 60 bagger a rarity for any stock. Going to $5 or $10 in an oil upcycle is totally reasonable, ignoring the short squeeze potential, as it has so frequently cycled between "in favor" and "out of favor". It it is a real company with a CEO who is on side of investors as he is the biggest investor in it.
However there is another factor, the volume on Tuesday and prior short squeezes of Enservco, its very expensive short interest rate to lend, being there are only about 15,000 shares left to short and the indications it is heavily naked shorted indicate it is very vulnerable to a huge short squeeze. Who has been squeezing it? Have no idea. But if the investors in ENSV only sell 10-20% on the days the stock is up 25-50% on a squeeze it would seem a super squeeze would take place and it could reach its $5-10 target in days or even hours.
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