AAP Inc (AAPJ)

[SPM555]

"My theory: $AAPJ walked away from the 3 acquisitions previously announced, which allowed them to walk away from a $1.5 mil note and $500k loan. Someone shorted this into the ground while that note was active. Capitulation was on 1/12 when the float traded 3x over, but a few days later they announced the note was canceled. IMO that note was what drew shorts to run this into the ground, so when it got cancelled suddenly they were hung out to dry in a huge way. $AAPJ can focus on Buddha Co. without having that note hanging over their head, and now the market will be highly accommodating with the shorts. I've followed the s/s and it hasn't gone up since 12/30, ie despite how ugly things got to start out the year, none of it was the company dumping. That likely means a huge short position is now in desperate need to cover, with the market cap still barely a million $ and opening today at $750k. With the s/s stable for the time being, that means the market has to reprice this even without any short covering, but I think the 1/12 candle has to imply a whopper of a naked short position. We'll see, but it shouldn't take too long to see if I'm right."

My theory: $AAPJ walked away from the 3 acquisitions previously announced, which allowed them to walk away from a $1.5 mil note and $500k loan. Someone shorted this into the ground while that note was active. Capitulation was on 1/12 when the float traded 3x over, but a few days…

— Professor Brainiac (@ChartDiligence) February 14, 2023