Deep Sail Capital
Founder & CIO of Deep Sail Capital, Long/Short GARP, Quality/Growth/Micro-Caps
Direct Digital Holdings could get wild because there are almost no shares left to short. Robinhood shows none available with a 103.5% cost to borrow and Fintel 200 shares at 108%, which is why it is moving. The micro-float stock hit $2.78 pre-market with the same chart pattern Future FinTech showed before its breakout. x.com x.com x.com x.comÂ
Professional Diversity Network's 77% spike looks set to fade: there is no news or catalyst, only an ultra-thin-float sympathy play with a 480K float, a $4.6M market cap and 28% insider ownership. Early exhaustion is likely, with a $5.00 target. x.comÂ
Xanadu's stock was a textbook trap that has now sprung, falling about 60% premarket as insiders exit. An S-1 registered about 294M shares for resale by existing holders, which brings the company nothing and floods the float of a startup with $4.6M in annual revenue. A multi-billion-dollar valuation was unsustainable, and as a post-SPAC name its hype premium evaporated once lockups and conversions hit. Brilliant technology doesn't make a safe stock when insiders rush for the exits. x.comÂ
SpaceX stock should benefit from basic supply and demand: its float is relatively low and it is on a fast track into the Nasdaq-100, so institutions need to position ahead of inclusion. Current market conditions and sentiment support that, and in a generational bull market the best approach is to stay invested in winners. x.com x.comÂ
Cerebras shares face selling pressure as a sizable unlock hits its tiny float. Per the prospectus, about 28 million Class A shares held by directors, officers and non-employee holders become tradable on the second trading day after Tuesday's earnings, only about three months after listing. With IPOs coming years later, VC and PE backers collect the gains while retail becomes exit liquidity, needing seven years of 70% revenue growth to justify the valuation. x.com x.comÂ
SpaceX insiders showed strong confidence by not dumping when $100B of shares became eligible to sell, and the stock rose instead. Early holders could have sold with the stock still 50% below its highs but did not; Musk's 42% stake stays locked until 2027 and shares unlock in stages. Index funds also need to buy more as SpaceX's Nasdaq-100 weight rises from about 1% to over 3.5%. x.comÂ
SpaceX's price is propped up by a tiny float that will flood with sellers through December 2026. Only about 5% of shares trade now; up to 20% of locked shares unlock around August 11, then 7% every 15 days through October, 28% around November 9 and the rest by December 9, about 20x today's float. Early investors will likely sell ahead of each other, dumping on retail, though the company itself should be extremely valuable long term. Musk's lockup runs to mid-2027. x.com x.com x.com x.com x.com … Show more