Support.com Inc (NASDAQ: SPRT) and Vinco Ventures Inc (NASDAQ: BBIG) are up more than 200% over the last month amid increasing retail investor interest.
Ihor Dusaniwsky, head of predictive analytics at S3 Partners, says a sizable short squeeze in Support.com and Vinco Ventures may not ever occur, he said Wednesday on CNBC.
Most people are familiar with the short squeezes that took place in GameStop Corp (NYSE: GME) and AMC Entertainment Holdings Inc (NYSE: AMC), which Dusaniwsky refers to as “OG meme stocks.”
The move starts with “act one,” which entails relentless buying, pushing the stock price higher. This is followed by “act two,” in which short sellers cover their positions, creating a short squeeze situation, Dusaniwsky said.
“We’ve got the act one in stocks like BBIG and SPRT, but unfortunately there’s not enough short selling to have a big effect on the stock price.”
There are 6 million shares being shorted in Support.com and 10 million shares being shorted in Vinco Ventures, he told CNBC.
Even if the short sellers cover their positions, it won’t affect the share price much because it’s such a small amount of shares compared to the daily trading volume, Dusaniwsky said.
“I’m not saying there’s not going to be a short squeeze in these names, because there very well could be.”
Dusaniwsky told CNBC the squeeze just isn’t going to be nearly as significant as the ones that took place in GameStop and AMC Entertainment.
See Also: 5 Short Squeeze Candidates To Watch: Support.com, Vinco Ventures And More
SPRT, BBIG Price Action: Support.com was down 23.96% at $23.85 at last check, while Vinco Ventures was up 9.57% at $8.93.
Photo by Sergei Tokmakov from Pixabay.
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