Positions
My entries are anywhere between $7.50 & $5.50. I loaded up throughout March as I dug deeper into Hindenberg's past & discovered all the amazing 💎✋ communities like this sub. I realized earlier today that my portfolio is about 95% SOS, yet I have never been less worried about an investment over my entire time in the market. You guys are amazing. The DD on SOS I have seen on this sub and others has been far more advanced than anything produced by Hindenberg. ( I don't even understand what they are thinking at this point ). I credit my seat on the 🚀 to all of you amazing apes whose hands stayed strong through the first rip no matter what lies were thrown your way. We wouldn't be here without you.
The more I research, the angrier I get that these hedge funds have been getting away with tearing down strong companies and hiding blatant lies and slander behind the guise of "short reports". They have been tearing down people's businesses and robbing retail traders blind for years, but they are going to get burnt on this one. We are leaving the solar system. 🚀🌌
🧠The DD
🚀 Every Hindenberg & Culper Research Lie Disputed w/ Strong Evidence 🚀
🚨 Hindenberg Research 1st Twitter "Short Report"
- Hindenberg's first short report, which read more like a slanderous Twitter rant, was heavily focused on the idea that SOS was a fabricated company due to the fact that they could not locate their facilities.
- To start, this idea was extremely blown out of proportion in the 1st place. I have an Uncle who owns a business that would have been in this exact position. This is a normal business practice and is done for tax purposes.
- Hypothetical Example: tax rate to have HQ "located" on paper in PA is 6%, but only 3% in NJ. To take advantage of this, a business owner would buy a small location in NJ, state it to be the HQ, then continue to run the bulk of operations in PA. This allows the business to save 3% in taxes and is 100% legal. (What blows my mind is Hindenberg had to know this and still went ahead with the lie)
- To start, this idea was extremely blown out of proportion in the 1st place. I have an Uncle who owns a business that would have been in this exact position. This is a normal business practice and is done for tax purposes.
🚨 SOS Executive Team 1st Response
- About a week after Hindenberg releasing the first smear campaign on Twitter, SOS executives, rightfully so, decided they had enough of the lies and made a statement dispelling all of the lies and misconceptions in the first "short report". Secondly, executives stated they had a much more detailed response being prepared for the next week.
- Hindenberg, Culper & other short sellers even went as far as to impersonate & disable some of the SOS social media accounts. This is where I began to get a feeling the shorts were paranoid...
- To confirm my hypothesis the shorts were getting shaken up, days later a one-page article began circulating the internet, stating anyone involved in trading SOS should call the Hagen Berman attorney office to seek assistance for being "scammed by a fraudulent stock"
- Aside from the big scary headline, the rest of the page was filler. They wanted that title to scare people off, too bad it didn't... 💎👐
- It was soon found out that not only was Hindenberg involved with that article being released, but he was actually the one to hire the attorney!
- It was at this moment I went from believing we had the shorts starting to sweat, to believing we had them by the balls ⚾⚾
- Link to Attorney Article: Hagen Berman Attorney Article $SOS
🚨 Hindenberg & Culper Research 2nd Twitter "Short Report"
- In what I believe to be a last-ditch effort, Culper Research once again pounces on the release of SOS's detailed statement.
- Culper was of the belief that SOS had had not been preparing a detailed response, rather "only pathetically attempting to cover its tracks".
- On March 3rd, Culper tweets again, this time accusing SOS executives of never actually purchasing the second batch of 5,000 miners they had promised.
- Keep in mind, the sole basis of this accusation was a delay in shipment and set-up times.
- 🎉🎊 Put your party hats on for this one...
- The very next day, March 4th, SOS Executives released a video touring their entire mining facility along with showing off the 5,000 new miners Culper Research was so sure were fake.
- This was a big push for me and was where I moved a majority of my funds into SOS
- The very next day, March 4th, SOS Executives released a video touring their entire mining facility along with showing off the 5,000 new miners Culper Research was so sure were fake.
- Culper Research went quiet for a while after this incident, but that didn't stop big bad Hindenberg from attempting to come back and save his fellow hedgie...
- On March 9th, Hindenberg tweets for the fifth time about the previously disproven lies regarding SOS "not having any facilities or even an HQ"
- Hindenberg continues on to slander SOS for choosing to keep their rigs in "various confidential locations" and uses MARA and RIOT as examples of how SOS "should be doing business.
- On March 9th, Hindenberg tweets for the fifth time about the previously disproven lies regarding SOS "not having any facilities or even an HQ"
- To be completely honest, this would have been the first red flag for if it was not for the fact that Hindenberg Research was, wait for it... also slandering and short on the cryptocurrency mining company RIOT at the time of the statement.
- This is where the deal was sealed for me. Hindenberg Research is a fund that should be comprised of smart individuals with one goal, making smart investment decisions. Not to mention they have all the tools to do so. It left my jaw wide to see how hypocritical of a statement they would make when even an average retard like myself could have guessed it to be a horrible idea.
- Link to Hindenberg short report on RIOT: RIOT Short Report - Hindenberg
- Hindenberg finishes off his tweet mocking the fact that SOS will relocate its miners from time to time in order to waste the least amount of electricity. I do not see how this statement even makes sense in itself since my interpretation is that operating in this way makes SOS is the smart one.
- Maybe that's the reason SOS is already cash-flow positive, and even further, was able to recapitalize in February with $300 Million in successful offerings...
- That brings me to my final point of the section. A snippet of DD I found in this sub last week that I do not believe has gotten the exposure it deserves yet, states how SOS is poised to beat out other popular mining stocks RIOT & MARA in BOTH the short and long term time horizons.
- Short Term Outlook: Since it is now clear SOS is not lying about its miner purchases, as long as we stay on the course were riding at the moment, SOS will quickly begin to outperform any other major mining company. Not only will it outperform, but as time goes on it will begin to do so exponentially.
- Long Term Outlook: Remember how Hindenberg criticized SOS for relocating its miners in order to reap the lowest electricity costs? Well, we can all get in the second laugh of the day. While Hindenberg for whatever reason saw efficient energy utilization as a negative, SOS's attention to detail with their resource usage is the reason they will beat out all other mining companies long term.
- SOS recently secured an agreement with Leibodong Hydropower Station, which will be supplying the electricity to SOS's cloud crypto mining center.
- Leibodong, located in Hejiang, Luzhou, Sichuan Province, offers richer and cheaper hydropower resources than the rest of China and will supply SOS's cloud mining center with electricity for a price between 0e.22-0.38kW/h
- Direct Statement from SOS Chairman Yandai Wang: "one of the key success factors for cloud crypto mining is to secure cheap power in regions with rich renewable energy resources. Southwest China, such as Sichuan province, is one of such regions. SOS will continue to search for cheap and sustainable electricity to execute its aspiring cloud crypto mining strategy."
Link to SOS Energy Deal: SOS & Leibodong Hydropower Station Agreement
🚨 SOS Institutional Holdings
- All we have heard so far from Hindenberg & Culper Research is how SOS is a shell company that is lying about its cryptocurrency mining endeavors in an attempt to scam investors with a classic pump and dump scheme.
🚀 I am about to provide you with two facts that in my mind, 100% nullify any such claims. 🚀
🚨 1) SOS Institutional Holdings
Direct quote from Fintel: Largest shareholders include Prelude Capital Management LLC, Susquehanna International Group, LLP, Klingenstein Fields & Co LP, Cutler Group LP, Bank Of America Corporation, Morgan Stanley, Cutler Group LP, Penserra Capital Management LLC, Edge Wealth Management LLC, and Advisor Group Holdings Inc.
- The day I discovered this information another 15% of my portfolio went right into SOS on a same-day dip. This sealed the deal for me. How can you even say SOS is a "shell" company when such large and well-respected banks & institutions are holding decent-sized positions. While nothing is ever a 100% chance, I am willing to be wrong if Morgan Stanley & Bank of America are too.
🚨 2) On top of the large, well-respected American institutions cutting themselves a piece of the SOS pie, SOS is also a big player in the world of cloud and marketing services. While I personally am heavy on SOS for the cryptocurrency play, SOS services some very large and well-respected insurance companies, financial institutions, medical institutions, healthcare providers, auto manufacturers, security providers, senior living assistance providers, and other service providers in the emergency rescue services industry across the globe.
- Seems to me like almost everyone believes in SOS besides Hindenberg and Culper, I wonder why...
🚀 Now that we've gotten the fundamentals out of the way, its time for some technical and social sentiment analysis on SOS 🚀
🚨 Extremely High Short Interest Data
Just to clear things up
- Short Volume: # of shares that have been shorted over a given time period
- Short Interest: # of shares that have yet to be covered or closed out by short-sellers
- Short Interest Ratio = # Shares Shorted / Average Volume of Daily Trades
- Short Borrow Fee Rate: % of interest charged to any short position for borrowing the shares, think of it as a mortgage, but your borrowing shares of SOS instead of money
- SOS's most recent borrow fee is 13.59%, while it might not seem significant without a comparison, AMC currently has a borrow fee of around 11% and is extremely hyped for a short squeeze. SOS BORROW FEE IS EVEN HIGHER!
- Short Shares Availability: # of shares available to borrow and use to short
- extremely low compared to SOS's overall float
- As you can see in the above image, the borrowing fee and short shares availability has slowly gotten lower and lower over the past few days. At first glance, it might seem scary and make you think there would be less of a chance for a potential squeeze, but let me explain.
- While some shorts have begun trying to exit their positions, so far it's been a minuscule amount. Look at what that minuscule change has done to the price action over the past few days.
- We are ahead of schedule price-wise for even my extremely bullish outlook and the majority of the shorts are still balls deep. They pulled out the tip and were up almost $3 in 3 days.
- While some shorts have begun trying to exit their positions, so far it's been a minuscule amount. Look at what that minuscule change has done to the price action over the past few days.
Bottom Line: When SOS has its real squeeze, it is going straight out of the fucking solar system. It isn't even going to stop and say hi to all the GME apes chillin' on the Moon. 💎✋🚀🌗
🚨 Charting
- The above charts may be a little hard to read, but bear with me, I've been learning to edit pictures on the fly as I make this post 😅
Left Two Charts
- Far left: SOS 1 Year 1 Day
- SOS 5 Day 15 Minutes
- Moving Average Convergence Divergence (MACD) ( Bottom of Chart): Trend-following momentum indicator that shows the relationship between two moving averages of a security's price. The MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA.
- MACD line first crosses the signal line (bullish), then continues its follow through to cross the centerline (bullish)
- I am extremely bullish here because while on lower timeframe charts such as the 5 Day 15 Minute, MACD tends to have a lot more movement, seeing a lineup across time frames just gives it an even higher success probability.
- MACD line first crosses the signal line (bullish), then continues its follow through to cross the centerline (bullish)
- Relative Strength Index (RSI) (Above MACD): Momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100.
- RSI line in general terms represents the strength of the bulls vs the bears. The higher the RSI, the stronger the bullish momentum and vice versa.
- Again, we see this trend not just on the 15-minute chart, but also lining up with the daily
- RSI line in general terms represents the strength of the bulls vs the bears. The higher the RSI, the stronger the bullish momentum and vice versa.
- Lastly, we are seeing extreme volume over the past few days relative to the average, as well as the On Balance Volume (OBV) steadily increasing over the daily chart
The other chart on the right does not require any in-depth technical explanation but shows us where the shorts entered their positions.
- This is extremely important because anyone short will begin to lose money as we push above their short entry. The further we push, the harder they begin to panic, and the second they do... Houston, we have fucking liftoff! 🚀🌗
🚨 Social Sentiment Analysis
Social media has played a major role in the short squeeze events that have been occurring over the past few months and I have found social sentiment indicators to be extremely accurate during such times.
- Shown above is SOS's Memeberg Terminal statistics
- Memeberg Terminal is a free social sentiment tracker that shows how many mentions a stock ticker gets across Reddit as a whole as well as individual subreddits such as WallStreetBets.
- Below Memeberg Terminal is Google Trends, another free social sentiment tracker, but for the entire internet, rather than just Reddit.
- As you can see, SOS is rapidly gaining traction on both Reddit and with the general public. In the past, this has been an extremely bullish signal for hot stocks like SOS.
- Another bonus is since SOS is still trading under $10, new investors see that as a steal due to the psychological barrier of double digits.
- As you can see, SOS is rapidly gaining traction on both Reddit and with the general public. In the past, this has been an extremely bullish signal for hot stocks like SOS.
🚨 Analyst Price Forecasts
- Pictured above are the three price targets given to SOS by professional analysts.
- Scorpio VC: $40
- CNN: ~$20
- SeekingAlpha: Fair value of $18, upside to $36+
- While their target is essentially just their prediction, the word spreads and tends to become a self-fulfilling prophecy.
- Also, I was not expecting suits like CNN to hop on our side so quickly and would be feeling bullish with price targets of even $12+ so the fact we have a high of $40 and our average is mid $ 20s is pretty wild.
🚨 Unusual Option Chain Volume ( Gamma Squeeze )
- Pictured above is one of the many unusual option volume notifications I have received from Benzinga Pro over the trading week. I wish I could add the rest but I could not figure out how to fit them in properly for the life of me.
- Essentially, this shows you when a large order is placed on a stock option contract. Large call orders are bullish and large put orders are bearish. While it in no way guarantees a price follow-through, it is a well-known strategy to follow the big money. Typically the rich are in the know before the average retail investor and the thought process is if they feel strongly enough to put $1 Million+ on the line, they are not doing it randomly.
🚨 Lastly: Bitcoin
- I saved the Bitcoin analysis for last because I am assuming the majority of you are following Bitcoin, but for those that are new or not into cryptocurrency, BTC is about to take its next leg up in its bull run
- I believe this may be one of the most aggressive rips we have seen in Bitcoin yet due to Jerome Powell announcing interest rates will remain low for at least another year if not two.
- Long story short, that destroys the value of the dollar which has a direct negative correlation to Bitcoin (Dollar goes down, Bitcoin goes up)
- Worth it to compare the DXY (US Dollar Index) chart next to Bitcoin just to see the correlation yourself.
- I believe this may be one of the most aggressive rips we have seen in Bitcoin yet due to Jerome Powell announcing interest rates will remain low for at least another year if not two.
🚨 Miscellaneous
- Above are some screenshots I couldn't find a place for in the DD, but still find extremely interesting. Feel free to add any insights on said images in the comments or through PM.
🎊 Conclusion 🎊
Congratulations if you've made it here, we'll have to meet up somewhere in space. 🚀🌌
😄 Please take it easy on me if I fucked anything up with formatting or images, this is my first ever extensive DD post. Feel free to leave any feedback in the comments. I had an amazing time drafting this and will definitely be doing more in the future.
On a serious note, I've learned almost everything I know about trading from Reddit DD and can not express how appreciative I am of not only this sub but any trading sub out there that sees this and Reddit as a whole. Anyone reading this, you are part of a community that has been able to get me excited and put a smile on my face on a daily basis. I know times are tough for everybody right now, but we really have been making the best of it and I can guarantee you these memories will last me a lifetime.
I genuinely believe we are going to the moon one way or another because this movie isn't ending until the good guys win. Never let anybody tell you how to live your life and follow your dreams!
💎 PS: If you have any questions about any of the information or want to know where I find my data, feel free to reach out through PM. I don't believe I am allowed to "promote" any of the services I use directly in a post. Happy hunting tomorrow you fucking apes! 🚀🌗🦍
No comments:
Post a Comment