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.