Koss, Clovis, Express, and Blackberry Are Next Reddit Targets
Following a stunning rally of GameStop (NYSE: GME) in the past couple of weeks, the market analysts believe several other companies including stereo headphones and accessories seller Koss Corporation (NASDAQ: KOSS) is likely to be the next candidate of Reddit Wall Street Bets users.
Shares of highly shorted Clovis Oncology (NASDAQ: CLVS) and Express, Inc (NYSE: EXPR) are also making big moves amid bullish Reddit commentary. Moreover, BlackBerry (NYSE: BB) has also been seeing significant promotion from WSB Reddit users over the last week.
— Will Meade (@realwillmeade) January 25, 2021
A former portfolio manager at Goldman Sachs Will Meade, who founded a $1b hedge fund, tweeted that CLVS, KOSS and AMC Entertainment shares already grew significantly in the past few days and may be candidates for the Reddit WSB crew amid high short interest, with another user adding a short list table of potential targets to the Twitter thread.
— jbarritt (@barrittj59) January 26, 2021
Shares of Koss Corporation grew 80% on Monday and the stock price of stereo headphones providers grew 60% in post-market trading to six years high of $9. The rally is totally unexpected and unpredictable because no catalysts were supporting the massive gains. Indeed, Koss has generated poor financial results for the latest quarter.
The security software platform BlackBerry, on the other hand, saw a share price rally of 111% since the beginning of this year. Patent and litigation settlement with Facebook has initially supported the share price rally.
The shares of apparel and accessories retailer Express grew 131% in Monday trading alone. New financing sources and expectations for a recovery in retail sales are adding to its share price growth. Besides that, the company has posted disappointing results for the latest quarter as its comparable sales fall 30% compared to expectations for the 14% drop.
Clovis Oncology is among the gainers and is likely to be the next Reddit candidate, according to analysts.
However, there is no catalyst in place to support the potential gains. Clovis Oncology expects its global Rubraca (rucaparib) sales in the range of $43.0 to $43.5 million for the fourth quarter, beating expectations for sales of $39.3 million.