This post is kind of an educational post. I shared my thesis on $JACK on this sub and got offended by WEN holders, that I‘m trying to distract or that JACK is bad or whatever bullshit they could make up. I know that on reddit most of the times the group which screams the loudest, makes the narrative. That‘s why I‘m making this new comparison between WEN and JACK, to show this group that they are all wrong.
# Yes dear WEN holders, you are all wrong
Normally, if you want to compare a company to another you will look into financials and P/E ratios and revenue growth etc. But for this comparison all of the named does not matter as we are here for a shortsqueeze and some quick money, right? So instead of looking at financials what am I looking at to see, if a stock is likely to squeeze?
First of all I‘m looking into the size of the float and the amount of short interest. The size of the float determines how easy it is to move the price of a stock and also if it’s easy for shorts to find shares if they want to cover. The amount of short interest determines the amount of shorts being forced to cover during a sudden spike in price, which will result in buying, leading the price even higher.
more shorts -> more buying -> more squeeze
Now what mix of these metrics is a good setup for a shortsqueeze? Shorts have to cover and buy back their shares, if the price rises above a certain level. In order to squeeze shorts you want to get the price up to this level as easily and fast as possible. So the float (and also the MCap) of a company has to be very small if you want to push the price up with only little capital and volume. Now if you compare WEN and JACK you will see that the float of WEN is 10 times as big as JACKs float. Also the MCap of WEN is roughly 5 times bigger. This means that to move the price of WEN shares, you need way more buying volume and capital inflow than to move the price of JACK shares. This means for a small, financially unstable crowd like reddit it is much easier to squeeze a stock like JACK than WEN.
# So in conclusion:
For a squeeze to happen you need high short interest and a big jump in price, which forces the shorts to cover. This jump in price can much easier be achieved with a company with low float and MCap than with a company which has larger float and MCap.
Short Interest WEN 29.83% < 40.17% short interest JACK
Float WEN 173.2m >>> 16.72m float JACK
MCap WEN 1.58b >>> 301.55m MCap JACK
If you look at these metrics, you can see that JACK has much better values in every metric. So it is just much more likely to squeeze.
Now how likely is a squeeze with JACK?
Yesterday we saw a small spike in cost to borrow (CTB) for JACK, which means that it is getting more expensive to short shares. This is a first sign, that shorts are starting to feel pressure. But to really make them cover, which has not happened yet, you need a huge spike in price which will force them out of their positions due to margin calls etc. So all we need is increased buying volume to push the price up to 20$ where, as per my last post, over 2million shorts will be forced to cover. This buying volume can come from reddit or algos picking up the bullish narrative around JACK.
# So if you want to make money, you have to start $JACKing off🍔🚀🚀