Clover Health Investments Corp (CLOV)

[Corundum]

The volume is the tell. But not in a good way. 74 million shares trade, and the stock is only up 16%. My my, what could be going on? Algos and sheep fleecing, in my opinion. I have already stated that warrant holders (20 million shares, or even 40 million shares) may start selling short again once the stock price goes over $11.50 (their exercise price for the warrant). It's a "free" trade. If the stock goes down, they can buy the stock lower than $11.50 to cover their short -- then keep their warrant to do it again and again. If the stock goes up, they simply cover by using their warrant at $11.50. For this to work many times, they need to let and/or help the stock get back above $11.50 again so they can repeat the fleecing once again.

So, slimhere, are you new to Clover?

I have no investment one way or the other in Clover. It may be a good company with a good chance of beating its way through what I have described. But it will be a tough battle. Just be aware of where the battlefields are when you invest.

I had similar issues with the "short squeeze advocates" on Kempharm. No one had done their homework, and the short interest was out of date and not available for a squeeze. Again I had no interest in KemPharm and just tried to warn people that there were "short squeeze" touts that they should ignore. In that particular case, I thought KemPharm was a good company with good prospects, but it was just not eligible for a short squeeze.