FLWS - low float, under book value
The most important part for a set up for tomorrow 4/22:
Had a 10% drawdown today after it's 20% run up yesterday. --It's now on the REG SHO SSR list and cannot be shorted at the bid for tomorrow.
FLWS has been beaten down and hyped a bunch in the past. I skipped all those plays but I've done some digging and really like the past quarters set up for a squeeze play from here:
$193m cash on hand - nearly = todays MC of 256m
Book value per share should be $4.22 considering cash and assets
Recently announced instacart nationwide partnership
Slashed marketing expenses by $25m and delivered a massive EPS beat last quarter
Fintel shows 104% of the available float shorted after you consider the institutional lock up
52% ownership by insiders and they're not selling.
EPS goal of >$1/share by EOY
Next EPS is May 7th. If you consider they probably got their highest order period over valentines day and pre-orders for Easter or Mothers days then this has a good chance to deliver yet another surprise beat.
Low gamma on the options chain so not much to fight the market maker delta hedging on.
With ~9m shares actually available for the float that means relatively low buying and holding volume can make this move
as a risk/reward squeeze set up getting in under book value of $4.22 seems like a solid play. Also saw another analysis pegging their book value at $4.52
Beyond the 52% insider control, the largest institutional holder (Fund 1 Investments) has locked up over 5.3 million shares (~14.6% of Class A), severely compressing the active liquidity shorts need to cover
FLWS is carrying only ~$123M to $147M in long-term debt against their $193M in pure cash. Because they aren't facing a liquidity crisis, management is under zero pressure to kill a potential squeeze with a surprise At-The-Market (ATM) share offering
NFA - trade your own plan
Disclaimer: My average is now $3.5 after adding at $4 today. Will sell if it collapses below $3