Burry's new favorite Penny Stock Play 🪙
Why Did Michael Burry Buy This Penny Stock?
I’ve done extremely well buying stocks that have this kind of setup.
Trading below $5 dollars per share – the lower the better as it pushed institutional investors out of the name and the security swings wildly. This is great as a mean reversion investor.
A new CEO who is dramatically cutting costs and focused on driving free cash flows.
The stock trading at a multi-year low with all but a few investors losing hope.
Insiders buying stock in the open market.
When investors have lost all hope in a business and the stock is trading for mere pennies, it is time to take a closer look. You especially want to take a closer look when the business gets a new CEO, is rapidly cutting costs and is putting their money where their mouth is and buying stock in the open market.
And this is exactly what Michael Burry sees in this stock. After doing a reverse analysis, we can clearly see why Michael Burry has bought this stock. It is cheap. Costs are getting cut. Every last institutional investor has dumped the equity. And the new management team is buying stock like crazy.
This stock is extremely interesting, and it appears to be still in play, despite the Burry bump.
Let’s dig in….
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