With naked short selling proving to be a major issue for companies, LQR House Inc. (NASDAQ: LQR) is the latest one to combat this phenomenon. Recently, the company approached the law offices of Holiday Hunt Russells to investigate naked short selling activity and other instances of market manipulation that its stock has been witnessing since its IPO on August 10th. Considering the resurgence of the naked short selling trend, LQR stock may be poised to soar this week.
LQR Fundamentals
One of the most memorable trends last year was the naked short selling trend which started when Genius Group Limited (NYSE: GNS) initiated an investigation into the naked short selling activity its stock was witnessing. That said, this trend is not dead. It started making a resurgence this month when GNS announced spinning off its subsidiary ERL to combat naked short selling by forcing a share count and its stock responded to the news by running 115%. Keeping that in mind, if LQR becomes a target of this market trend the stock could skyrocket given its low float of 8.8 million.
Trends aside if this investigation bears fruit, naked short sellers will be forced to cover their positions which could see the stock run to the buying pressure that may happen. In this way, LQR stock could be prone to have major runs which could make it a bargain at its current beaten down price.
One of the most compelling things about the stock’s potential to run is that insiders can not sell their shares at the moment. According to the company’s S1 filing, its insiders, directors, and 5% shareholders are under a 6-month lock-up period in which they can’t sell their shares. This is a promising sign since this effectively eliminates the potential of any selling pressure from insiders for the next 6 months. Based on this, LQR’s fight against naked short selling could allow its stock to run in the coming weeks and possibly reach its IPO price of $5 on high trading volume.
Technical Analysis
On the 5-minute chart, LQR is in a neutral trend with the stock trading in a sideways channel between $1.14 and $1.25. Looking at the indicators the stock is above the 50 and 21 MAs which is a bullish sign, but below the 200 MA which is a bearish sign. Meanwhile, the RSI is neutral at 49 and the MACD is neutral as well.
As for the fundamentals, LQR’s investigation into naked short selling is a major catalyst for the stock given the popularity of this trend. In this way, the stock may be poised to soar this week and replicate the moves of GNS stock. With the stock holding the 21 MA support, investors could find the current PPS a good entry point into LQR stock.
LQR Forecast
Considering investors’ enthusiasm about stocks combatting naked short selling, LQR stock may be poised to soar this week thanks to its recent investigation into naked short selling activities as well as market manipulation concerning the stock. Given the resurgence of the naked short selling trend due to GNS’ anticipated record date for its spinoff’s share dividend on August 31st, it may not be a surprise to see LQR have a similar run in the coming weeks.
LQR Fundamentals
One of the most memorable trends last year was the naked short selling trend which started when Genius Group Limited (NYSE: GNS) initiated an investigation into the naked short selling activity its stock was witnessing. That said, this trend is not dead. It started making a resurgence this month when GNS announced spinning off its subsidiary ERL to combat naked short selling by forcing a share count and its stock responded to the news by running 115%. Keeping that in mind, if LQR becomes a target of this market trend the stock could skyrocket given its low float of 8.8 million.
Trends aside if this investigation bears fruit, naked short sellers will be forced to cover their positions which could see the stock run to the buying pressure that may happen. In this way, LQR stock could be prone to have major runs which could make it a bargain at its current beaten down price.
One of the most compelling things about the stock’s potential to run is that insiders can not sell their shares at the moment. According to the company’s S1 filing, its insiders, directors, and 5% shareholders are under a 6-month lock-up period in which they can’t sell their shares. This is a promising sign since this effectively eliminates the potential of any selling pressure from insiders for the next 6 months. Based on this, LQR’s fight against naked short selling could allow its stock to run in the coming weeks and possibly reach its IPO price of $5 on high trading volume.
Technical Analysis
On the 5-minute chart, LQR is in a neutral trend with the stock trading in a sideways channel between $1.14 and $1.25. Looking at the indicators the stock is above the 50 and 21 MAs which is a bullish sign, but below the 200 MA which is a bearish sign. Meanwhile, the RSI is neutral at 49 and the MACD is neutral as well.
As for the fundamentals, LQR’s investigation into naked short selling is a major catalyst for the stock given the popularity of this trend. In this way, the stock may be poised to soar this week and replicate the moves of GNS stock. With the stock holding the 21 MA support, investors could find the current PPS a good entry point into LQR stock.
LQR Forecast
Considering investors’ enthusiasm about stocks combatting naked short selling, LQR stock may be poised to soar this week thanks to its recent investigation into naked short selling activities as well as market manipulation concerning the stock. Given the resurgence of the naked short selling trend due to GNS’ anticipated record date for its spinoff’s share dividend on August 31st, it may not be a surprise to see LQR have a similar run in the coming weeks.