Beam Global (BEEM) is a Zacks Rank #2 (Buy) that sports an F for Value and for Growth as well. This EV play has a massive short position and the potential for a huge squeeze play is in the making. Is this the next Tesla style "Mother Of All Short Squeezes"? It very well could be so let's explore more about that idea in this Bull Of The Day article.

Description

Beam Global produces patented infrastructure products for the electrification of transportation. It produces products for electric vehicle charging, outdoor media and energy security. Beam Global, formerly known as Envision Solar, is based in San Diego California.

Once they realize the retail holders are not selling, but rather increasing their position, the squeeze will start.

One word of advice to the shorts, if you are going to panic, do so early.

Short Position

BEEM has 8.9M shares outstanding and roughly 7.5M shares in the float. Of the shares in the float, about 34% of those shares are sold short.

The data we get on shares sold short has a lag. It's a big lag actually, but when we look at the last two readings of the number of shares should short we see the covering has already begun.

Currently there are 2,560,000 shares sold short while the prior reading came in at 2,670,000. That is a decrease of 4%… and there is plenty more covering to come.

Crowded Trade

Short sellers have a way of all targeting the same stock at the same time. They did this same thing with Tesla (TSLA) too, as they piled into short sales and then long put positions.

The problem with this is that there are too many shares sold short. When the shorts start to cover and the price starts to soar, the exits will be jammed and it will be that much harder to exit this short position.

The most important part of a squeeze play is making sure the shorts are in the stock in a big way.

The next step is outlining why the shorts are barking up the wrong tree.

This story originally appeared on Zacks

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Disclaimer

Beam Global published this content on 23 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 December 2021 12:16:05 UTC.