This stock has a short float of 30.2%. That's massive. To put that in perspective, GameStop—a stock Wall Street has hated for years—only has a 16.6% short float. Now, just because a stock is heavily shorted doesn't make it an automatic buy. Wall Street shorts these companies for a reason—most of them are genuinely struggling businesses. But here's where it gets interesting: When positive momentum starts hitting these hated stocks, the mechanics become explosive. Buying pressure builds. Short sellers panic. They're forced to buy back their positions, creating even more buying pressure. It's a feedback loop that can send prices parabolic in days. That's exactly how I crushed it with RILY last year. Why VSTM Is Setting Up Right Now Verastem is building serious momentum. Shares are up over 58% in the last month. And here's what Wall Street doesn't want to admit: They hate this stock for all the wrong reasons. The Real Story: - Yes, VSTM has a history of pipeline disappointments (biotech investors remember everything)
- Their initial FDA approval is for a niche cancer indication (not the blockbuster Wall Street craves)
- They're burning cash and will need future funding (dilution fears)
- The entire biotech sector has been beaten down in 2024
But here's what they're missing… The Technical Setup That Has Me Interested If you pull up VSTM's options chain, you'll see massive open interest on the $8 call strike expiring September 19th—over 10,000 contracts. That tells me someone with serious money believes this stock is going higher. The challenges: VSTM doesn't have weekly options, and with 61.5 million shares outstanding, the float isn't as tight as I'd prefer. But the short interest and momentum combination is too compelling to ignore. Your Action Plan Add VSTM to your watchlist. This is a stock Wall Street hates right now, but momentum is building. Remember: These are potential lotto trades. High risk, high reward. If you do decide to move on them position size accordingly. And if you want to learn the complete system behind how I spot these setups—including the exact entry signals and risk management rules—join me this Wednesday, August 27th at 2 PM ET for my Lotto 10X Summit. RSVP HERE Because while everyone else is paralyzed by market uncertainty, I'm hunting the next 1,000%+ winner in the stocks Wall Street refuses to touch. |
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