A few weeks ago we had the “Reddit army” squeezing heavily shorted stocks like GameStop (GME US) and even the precious metal silver albeit for just 24-48 hours. Short squeezes of often average quality stocks is often a characteristic of maturing bull markets but it can go on for a long time. Yesterday we saw Nearmap (NEA) surge almost 19% literally tearing the face off US trading house J Capital who put out a short report on the stock just last week.
Time will tell how much foundation the report has with regards to the cloud-based geospatial information business but from MM’s perspective its gone nowhere in 2-years and we see no reason to pre-empt anything just yet. However it does illustrate that in todays market stocks with large short positions can significantly outperform when things are just ok under the hood.
