KOSS is ripe for a huge short squeeze.
Insiders have stopped selling. Insiders sold 1.1 Million shares in the first few days of February. I spoke to the CFO this week and he told me the insiders WILL NOT be selling anymore in large amounts as the KOSS family wants to maintain control of the company. Therefore, they DO NOT want their share ownership to go under 50%. Its close to 51 % right now!
The short interest is up ...way up from Jan -15 reporting! As a result of the last squeeze in late January, that saw KOSS stock go from $3.90 on Jan-26th to $115 ( intra day) on Jan 29th, the shorts piled up on the stock as the short interest went from 12,755 on Jan -15th to 756,138 on Jan-29th, according to FINTEL.
I estimate the short position has since gone up to about 1 million. Although this is just according to my estimates, I do think I am pretty close to the marker. This is because, according to FINTEL, daily short VOLUME was still very high from Feb-1 to Feb-5th as it averaged over 1.6 million per day. Sure, the daily short volume has declined since Feb 5th, which means that the shorts have been covering their short positions. But given the extremely low float of this stock, I would venture to say that they been covering with very small volume by matching regular market sales volume with a short covering which requires them to buy an equal amount of shares in the open market. This has to been done like this, so as to not cause the buying to usher in a herd of buyers at the same time.
Shorts have to pay a near usuriously high amount of interest for their shorted shares. According to FINTEL, they have to pay between 77% and 105% interest on their borrowed sold shares, meaning they are getting desperate as their shorting of KOSS is losing them money....and the short squeezers that we are, it is our duty to take them out of their misery and buy up the stock, in order to force them the cover at much higher prices :)
This SECOND short squeeze should take the stock way over $100 and possible hit $200! Why do I make such an outrageous prediction? 1) Because KOSS is now on the radar of many REDDIT traders, whereby before, they were an unknown stock and the fast rise, caught many by surprise. 2)In late January, most of the market news centered around GME and AMC during the first squeeze, so many traders had to divide up the investable cash between 3 stocks. But now, KOSS will have the trader's undivided attention, and finally 3) They already have an active 750,000+ short position with as much as 1million shorts according to my estimates. Back in January 26, when the first short squeeze hit, the KOSS short position was just 12,755 ( Jan -15) and the stock still went over $100 (purely on the fact of the stock's extreme low float of 1.4M shares), imagine this squeeze, with over 1million short position and a 2Million public float, BOTH ready to supply the FUEL TO THE FIRE! KOSS to $200 in a few days is VERY POSSIBLE!!!
