Known for generating incredible mobility in the charts, Singapore-based education technology (edtech) specialist Genius Group (NYSEMKT:GNS) again piqued investor curiosity. GNS stock jumped more than 16% during the midweek session before dipping to 4.4% by the market’s close. While the news cycle didn’t appear to catalyze shares directly, social media activity has been strong regarding Genius’ upcoming investor meeting, scheduled for April 19.
So far, the company hardly revealed anything about what specific details to expect, thus likely sparking more intrigue. According to Genius CEO Roger Hamilton’s Twitter post, he declared “[p]lenty of developments to report on.” In addition, Hamilton stated that he would provide updates on all progress and corporate actions associated with GNS stock.
Going through a random selection of responding tweets, investors appear curious about Genius’ offer to acquire Troika Media (NASDAQ:TRKA). As InvestorPlace Markets Analyst Thomas Yeung, CFA, pointed out, Troika started life as an acquisitions company, purchasing everything from broadband companies to brand consultancies. However, the ventures all disappointed, accruing sharp losses.
However, Troika changed its framework dramatically when it acquired Converge, LLC, an ad tech firm generating that posts approximately $21 million in profits every year. Therefore, it’s possible that Genius could leverage the ad tech business if it buys out Troika.
Of course, that’s a big “if.” Further, Hamilton’s tweet about not being able to discuss topics tied to non-disclosure agreements (NDAs) and other legal arrangements suggests few details may be on tap regarding Troika.
Investors Seek Contrarian Signals for GNS Stock
Nevertheless, even without robust discussions about the Troika buyout proposal, fans of GNS stock may find value in the investor meeting. In particular, traders will probably look for signals that Genius shares present a contrarian upside opportunity.
Earlier this year, Genius announced the launch of the “Illegal Trading Task Force,” a legal action against illicit trading activities targeting GNS stock. Although shares have been successful so far this year — posting gains of almost 275% since the start of January — they’re down nearly 94% over the trailing one-year period.
Interestingly, data from Fintel reveals that GNS presently incurs a short interest of 12.19% of its float. Its short interest ratio sits at 0.55 days to cover, an unremarkable statistic. However, according to the investment resource’s proprietary Short Squeeze Score, GNS hit 87.75 out of 100 points. The metric ranges from 0 to 100, with higher numbers indicating a greater probability of a short squeeze materializing relative to sector peers.
Notably, GNS stock ranks 82 out of 250 on Fintel’s list of most heavily shorted securities. However, it did drop nine places from the prior week.
Why It Matters
According to TipRanks’ technical analysis indicators, GNS stock scores bullishly against near-term market gauges. That’s unsurprising given today’s massive move higher. However, for one-month technical indicators, the consensus paints a pessimistic picture.
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On the date of publication, Josh Enomoto 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.
