$TWNK - Large bullish play has my attention 👀

Last week, a friend of mine gifted me a box of Twinkies. Twinkies are an American snack cake, described as “golden sponge cake with a creamy filling”.

Here’s what they look like. They taste really nice. I’ll probably buy some more from Spinneys this weekend.

I like investing in products that I consume on a daily basis, so I did some research on $TWNK. Here’s what I’ve come up with:

  • Hostess was taken public after filing and emerging for bankruptcy in 2012. Since then it has has strong revenue growth over the past 20 quarters.

  • The company is now highly profitable and it has weathered the pandemic well. Gross profit in the past 12 months has been $371 Million, up 39% compared to two years ago.

Best part? They’ve a large short interest. Meaning it’s a reddit friendly stock.

  • Short interest is 20.77% of the float That’s higher than most meme tickers here (comparable to AMC GME, much higher than BB, WEN, etc). Furthermore, short interest has increased 44% since the start of January are we’re starting to see a number of pops this spring from failed to deliver shares.

  • The stock has very low volume right now (only an average of 1.2M shares traded per day). If a squeeze were to happen, at the current volume it would take shorts a month to cover.

  • Additionally, 123.67% of all the float is held by institutions, and very little by retail meaning that any significant volume will send the stock flying.

What do you think about Twinkies? I see yummy profits ahead.