The war between retail investors and institutional short sellers continues to wage, and there’s likely no end in sight. Newly empowered retail investors will damage investment firms here and there, sometimes with a big win that drains a firm of millions of dollars. However, with the financial firepower of these firms, there’s plenty of short calls still to be placed, and they are hoping to simply test the endurance of coordinated short squeezers. Regardless of whose side you take, you likely have an opinion on the matter. That’s especially true if you are invested in meme stocks. Camber Energy (NYSE:CEI) is one of the newest contentious plays between Wall Street and meme traders, thanks to a short report by Kerrisdale Capital. But what plays beside CEI stock are these firms shorting?
Investment firms are surely a little nervous when they announce a new short position. Ever since GameStop (NYSE:GME) and AMC (NYSE:AMC) short squeezes drained firms of nearly $1 billion in just days, the idea of investors mobilizing on a short position once again comes with considerable weight. Kerrisdale Capital is showing that they are not afraid in the least, though.
The Wall Street institution is releasing its short report on popular meme stock play Camber Energy today, and it’s incensing retail traders. Announcing the report with a series of cheeky tweets, calling the play “absurd” and littering the main points with emojis, the firm is flying in the face of what CEI bulls and meme traders alike want to see.
Kerrisdale Goes Short on CEI Stock, Continuing a Meme-Stock Manhunt
Kerrisdale’s report is making big waves in the meme-stock investing sphere. For short-squeeze traders, these waves are not fun ones. CEI stock is currently down over 50% with the report. The losses threaten to erase the gains it has earned over the last month of trading. Trading volume is unusually high for the stock as well; 659 million shares are trading against a daily average of just 120 million. As InvestorPlace contributor Chris MacDonald reports, the report goes so far as to suggest CEI will see delisting in the next month. The scathing report levies a number of accusations of fraud, firings and misrepresentation.
Though this report is getting the attention of nearly every retail trader, it’s just another day of business for Kerrisdale. That’s because the firm has been unabashedly shorting numerous different big name retail stocks. Its last short position came early in the summer, when it announced it was shorting Virgin Galactic (NYSE:SPCE). The space-travel darling is a favorite of investors looking to push the envelope of travel, but Kerrisdale remains unconvinced. Rather, the company says its success is dependent on “ignorance of its long and often ugly history.”
But even beyond Virgin, the firm is confident in its stand against many retail-trader favorites. Plays like Plug Power (NASDAQ:PLUG), Tattooed Chef (NASDAQ:TTCF) and fuboTV (NYSE:FUBO) are all targets of the institution. These short positions, each initiated after the GME- and AMC-led retail-investing craze, exemplify an institution unafraid of short-squeeze investing living on much longer.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.