Is iRobot The Next Big Squeeze Candidate? Let’s look at IRBT – June 2, 2021


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This is Scott with your Chart of the Day; I want to take a look at a couple of charts.

As you may have heard AMC ( NYSE: AMC ) was on a massive run today, at one point it was up over 100 percent. As the stock has had a massive short squeeze playing out in just a couple of days it’s up over 400 percent and even up in the after hours here. So my thought now is, what’s the next potential squeeze candidate?

As we know AMC ( NYSE: AMC ), GameStop ( NYSE: GME ), and Koss ( NASDAQ: KOSS ) all had massive squeezes around the same time. And they are all kind of perking up now as well. Koss ( NASDAQ: KOSS ) here is up 68 percent. GameStop ( NYSE: GME ), today, is up 13 percent.

But there is one other stock that also squeezed around that January, February time and that is iRobot ( NASDAQ: IRBT ). Now, iRobot ( NASDAQ: IRBT ), as you can see, has the same kind of pattern. There was a massive squeeze in January and February but today iRobot ( NASDAQ: IRBT ) is only up 7 percent, which is pretty low compared to all of them.

The thing that has me interested about iRobot ( NASDAQ: IRBT ) is their short interest. If I bring in a chart from MarketSmith we can see how AMC ( NYSE: AMC ), over here, has about 0.9 days of short interest, and the float is 441 million shares.

Let’s look at GameStop ( NYSE: GME ); GameStop ( NYSE: GME ) has 1.2 days of short interest and a float of 58.7 million shares. If you look at iRobot ( NASDAQ: IRBT ), iRobot ( NASDAQ: IRBT ) has 9-days of short interest. It also has a way smaller float than GameStop ( NYSE: GME ). GameStop ( NYSE: GME ) had like 58 million shares, iRobot ( NASDAQ: IRBT ) only has 27.3 million shares, so it has half the amount of shares and almost 10 times the amount of short interest.

Again, it is not really up much after hours. So I think this could potentially be a little bit of a hidden squeeze candidate going forward. Full disclosure, I do have a small position in iRobot ( NASDAQ: IRBT ) that I bought today, my average price is about $102.00, so I am up on the trade but not up significantly. I think that this could keep going, and I may buy more tomorrow if it does.

Again, look at the short interest, 9-days of short interest compared to AMC ( NYSE: AMC ), 0.9-days of short interest. So it has a way smaller float, it has way more short interest, and it hasn’t gone as much as those other 2 stocks over the last couple of days here.

I think there is a big opportunity that is being missed here with iRobot ( NASDAQ: IRBT ). I know I want to capitalize and maybe you can too. I am going to keep an eye on iRobot ( NASDAQ: IRBT ) and watch for a move over today’s high on higher than average volume. That would give me the indication that the squeeze is now happening with this stock too.

So keep an eye on iRobot ( NASDAQ: IRBT ) and we will see how this plays out. Because this is a riskier trade I would definitely recommend only doing this if you have some trading experience. And potentially, if you are taking a trade like this, do it with small size, don’t play with money that you can’t lose because this could go either way. It’s a little bit of a high-risk idea but one that I think could work.

So like I said, I will be setting an alert right above today’s intraday high, maybe around that 107.00-108.00 level, and see if this can pop to the upside like AMC ( NYSE: AMC ), GameStop ( NYSE: GME ), and the others.

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