Inverse Kelly Strategy?I have no skin in this one, but I came across this tweet while browsing some tickers on twitter. There's a few analysts and commentators that I have bookmarked because they leak news or provide quality due diligence, but Kelly Brown is NOT one of them.
https://twitter.com/rubiconcapital_/status/1277777646651392003 I find his ideas interesting and I respect that he supports his thesis with financial analysis, but I really have to question his logic. He is keenly aware that MMCAP has been manipulating the price and using bought deals to cover short postions, so I don't get why you would ever touch this one. Look at what happened to IAN with GGP. I would not want to at the mercy of these hedge funds. Kelly was also infamously wrong on ZENA before, so his endorsement just might be the kiss of death.
That being said, you would have to be crazy too short a 7 cent stock and he seems to have been humbled, so I do hope the trade pays off for him.