Ever walk down the street and feel like someone has punched you in the stomach? Cannis Minor is closing. Our local pet store... I was in there just the other day... owner said I was his best customer- now there is a sign 50% off they are closing. This is the third pet store to close in my hood in my 20 years here... all in the last three. This has me thinking about who killed the pet stores-- CHWY....
ACV Auctions' earnings report shows fast growth in Q4 ACV Auctions posted a strong earnings report Feb. 16, beating analyst expectations and posting rapid growth in key metrics. The Buffalo-based tech company, which serves the used-vehicle dealer market, went public in March 2021 at $25 a share. The company's public market valuation has gone down since then, though shares inched back up to $11.50 apiece after the earnings were posted. Here are three important numbers from the company's Q4 earnings: 86% In Buffalo Business First's earnings preview, we stated that analysts were looking at ACV's year-over-year growth as a key metric. That was especially true after ACV revenue growth slowed from 117% in the second quarter to 36% in the third quarter. The company got back on track in its most recent three-month span, reporting revenue growth of 86%, up to $100.2 million, compared to the same period last year. “We are very pleased with our strong results in the fourth quarter, which once again exceeded expectations, despite the ongoing crosscurrents impacting the automotive industry," ACV Auctions CEO George Chamoun said. "Our growth is driven by continued market share gains, strong adoption of ACV’s value-added services, and traction of new data and (software-as-a-service) products." $450 million So what's next? ACV noted that it expects revenue to reach the $450 million to $460 million range this year, which would be a 26% to 28% increase. Expected losses are again expected to increase, from $30.8 million in 2020 to $44.1 million last year to $53.57 million in the current year. Operating losses are part of the premise of a growth-minded tech company such as ACV, which is spending to establish itself in new territories and to build new digital products for customers. But keeping losses in line with expectations and improving margins above that threshold would go a long way on Wall Street this year. "We reached our goal of achieving nationwide coverage on ACV’s marketplace, while successfully launching new offerings that we believe position ACV to deliver sustainable long-term growth within the large market opportunity ahead of us,” Chamoun stated in the earnings news release. $1.3 billion ACV Auctions used the occasion to point out its long-term roadmap. In short, the company expects revenue to reach $1.3 billion, more than triple the current number. How does it get there? ACV plans to lay out its plans in detail March 1 in an analyst meeting at Nasdaq's Times Square headquarters in Manhattan. Tic, Tic Tic.....
Golden Ocean Group GOGL: This shipping company is engaged in the transportation of dry bulk cargoes. It operates primarily in the Capesize and Panamax market has witnessed the Zacks Consensus Estimate for its current year earnings increasing nearly 5.4% over the last 60 days. Golden Ocean Group Limited Price and Consensus Golden Ocean Group Limited Price and Consensus
Archer Daniels Midland ADM: This company is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products it has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11% over the last 60 days. Archer Daniels Midland Company Price and Consensus Archer Daniels Midland Company Price and Consensus
Most-Shorted Stocks Positioned to Buy: Chewy (CHWY) Chewy, Inc (CHWY) Fibonacci-based two-step completion following deep bear market Source: Charts by TradingView The last of our most-shorted stocks that’s ready to learn a new trick is pet retailer Chewy, Inc. Shares of CHWY have a bear population of about 28% and market cap of $22 billion. Shorts have been the top dog in Chewy stock for the past year since peaking at $120 last February. But CHWY’s days in the doghouse appear all but over. Off the price chart, bullish double-digit growth, an expansion into pet insurance and attractive pet spend forecasted to grow from $100 billion to $275 billion by 2030 should have investors’ attention. Today, bulls also have a bear market of nearly 70% that appears to be completing its cycle. Shares of this most-shorted stock have formed a bullish inside monthly candlestick off a two-step pattern and 76% retracement level not unlike LCID, but much larger in scope. An oversold stochastics hasn’t yet rung the dinner bell for bulls, but with monthly Bollinger Band support also in play, CHWY stock looks like something investors can sink their teeth into. VAN-?
SHORT INTEREST GAINERS Virgin Galactic (SPCE) has had a difficult second half of 2021 as structural deficiencies have dragged down its commercial space travel plans. The company finally delivered some good news with an official announcement this week that $450K tickets for spaceflights would be starting this month, sending the stock up by nearly 30% intraday, and yet the bears were hardly spooked by the developments. Estimated short position on Virgin Galactic shares as a percentage of free float was up two percentage points to 22.7%, the highest level in three weeks, with the stock also ending up just 2% in the five-day period covered. Estimated short position in Stitch Fix (SFIX) was down to two-month lows last week, but with carnage among Growth stocks returning this week, the percentage of shorts as a free float on this name also rose to multi-month high of 26%, up four percentage points. Likewise, days-to-cover ratio on Stitch Fix was up 23% at 1.6. The stock held support around $14 on three separate occasions over the past month, but with shorts piling on and volumes rising over the past two sessions, Stitch Fix breached that level this week, falling 15% in the five-day period covered to a new 52-week low. Estimated short interest in Chewy.com (CHWY) was up in all five trading days this week, rising over three percentage points to record-high of 28.5%. Investors appear to be echoing the bearish thesis and lumping the stock with other “pandemic winners” that have had a particularly difficult last couple of sessions in anticipation of more pronounced return to office and other away-from-home activities. In the five-day period covered, Chewy.com shares are down 13%.
- Very unclear what the market rewards next. We are in a phase of the Bear market where frequent " face ripping " rallies occur. - My sense is folks are going to return to something they are familiar with-- most likely tech... but perhaps these " pandemic winners " as well. Even though the virus is fading the effects are long lasting. Zoom for example is not going away. At some point it gets rewarded for being a company that grew through the pandemic and is still standing... and in abetter place than before the pandemic. How many companies can say that? I think CHWY can.. I think folks have cut down on their stupid travel and chores and are ordering stuff right to the house... That's not changing. I don't think. These shorters of CHWY... they may get ripped apart when the next rally comes.
Chewy, Inc. (CHWY)- I am a buyer @$44.- NYSE - Nasdaq Real Time Price. 45.79-1.35 (-2.86%) As of 12:25PM EST.