The Daily Shitco · No. 001

Every stock newsletter is the same. Macro paragraph, three large caps you already own, a chart of the ten year, a Substack paywall. Meanwhile the people who actually open their brokerage app before the bell are trading the same eight garbage tickers as everyone else in the group chat.

So this is the newsletter for those tickers. One a day, no filler. What each shitco did, why it did it, the chart, and the loudest bull and the loudest bear on the timeline. The takes are written by the cult leaders themselves. We just compile the pitches. You decide who is lying.

Joey

SLS SELLAS Life Sciences

+27.2% $3.41 · vol 61M vs 9M avg

The move

Gapped up at the open on a Friday afternoon 8-K that nobody read until Sunday, ran to $3.70 by 10:15, then spent the rest of the day getting sold into by everyone who bought it at $1.90 in July. Closed near the highs anyway. That is the tell.

Why

The filing confirmed the independent data monitoring committee meeting for the Phase 3 REGAL readout is on the calendar. No data, just a date. In shitco land a date is a catalyst and a catalyst is a reason to buy calls. Short interest was sitting around 18% of float, so the first leg was covering and the second leg was the timeline finding out.

Chart

Intraday, 9:30 to 4:00. Dashed line is Friday's close.

The takes

Bullish

GPS Gang

@galinpepimut_gary

18% short on a binary with a date. They have to cover into the readout or eat it. $SLS $5 before the DMC even opens the envelope.

4:12 PM · 2,104 likes · 388 reposts

The pitch: forced covering plus a hard date. Both are real. Whether the data is good is a coin flip nobody in the replies is pricing.

Bearish

u/dilution_enjoyer

r/pennystocks · 6h

Reminder that SLS has an active ATM and $14M in cash

They ran it 27% on a scheduling notice. That is not a catalyst, that is a press release. Watch for the offering at $3 within the week. Every single time.

▲ 1,842 · 417 comments

The pitch: cash is thin, the at-the-market facility is live, and management has diluted into every prior spike. Also real.

Cult leader

@galinpepimut_gary · SLS since $0.60, 41k followers, has never sold

Look. I know what this is. It's a $200M biotech with one drug and a CEO who loves a press release. But the REGAL trial is event-driven, the events have happened, and the committee meets whether Reddit believes it or not. If the survival data is anything close to the interim, the float is too small for the shorts to get out clean.

Am I a bagholder? At $0.60 I was. At $3.41 I'm a visionary. Position: 40,000 shares, no calls, I'm not an animal.

BYND Beyond Meat

-14.9% $2.06 · vol 48M vs 22M avg

The move

Down all day with no bounce worth mentioning. Opened red, made a new low at 1:40, closed a nickel off it. The squeeze crowd that carried this thing from $0.90 to $3.80 last month has gone quiet, which on this ticker is the loudest sound there is.

Why

The debt exchange that everyone called a bailout converted at a price that puts roughly 300 million new shares into the hands of people who did not buy them to hold. Those shares started hitting the tape today. Nothing about the business changed. The business was never the point.

Chart

Intraday, 9:30 to 4:00. Dashed line is Friday's close.

The takes

Bullish

SqueezeSzn

@squeezeszn

Stocktwits

$BYND forced sellers are done by Wednesday. Same setup as August. 40% of float still short. You sell to them at $3, not to me at $2. Bullish.

3:58 PM · 611 likes

The pitch: exchange selling is mechanical and finite, short interest is still huge, and the last squeeze started from a worse place than this.

Bearish

margin call mike

@margincallmike

People are calling a 300M share unlock a "bear trap." It's a plant-based burger company that lost money selling burgers to people who wanted burgers. $BYND is a $1 stock with a fan club.

2:20 PM · 3,377 likes · 902 reposts

The pitch: the supply is real and the demand is a group chat. Fundamentals only matter on the way down, and this is the way down.

Cult leader

@squeezeszn · ran the August BYND thread, 88k followers, blocked by half of FinTwit

Everyone who says "the business" about BYND is telling you they have never traded it. This is a float and a short interest number, nothing else. In August the exchange holders sold, the stock went to $0.90, and then it went to $3.80 in nine sessions because shorts don't get a vote when the borrow disappears.

I'm not buying today. I'm buying when the volume dries up and the tape goes boring. That's usually a Thursday. Position: none right now, watching the borrow rate like it's my kid's swim meet.

BBAI BigBear.ai

+9.1% $5.88 · vol 133M vs 90M avg

The move

Sympathy pop. Lifted with the rest of the defense-AI basket in the first hour, faded to flat by lunch, then a 2 PM headline about a government contract sent it straight back to the highs. Closed strong on real volume.

Why

An Army task order extension, worth a number that would be a rounding error to Palantir but is about 8% of this company's annual revenue. The retail thesis has been "small Palantir" for two years, and any headline with "Army" in it re-lights that thesis for a session or two. The dilution is real, the backlog is real, and the timeline does not care about either.

Chart

Intraday, 9:30 to 4:00. Dashed line is Friday's close.

The takes

Bullish

u/PLTR_but_poor

r/wallstreetbets · 3h

BBAI is PLTR in 2021 and I will not be taking questions

Same customers. Same buzzwords. 1/40th the market cap. Every task order gets extended because switching vendors in the DoD takes longer than a presidential term. 9/19 $7 calls, 400 contracts, yolo.

▲ 4,210 · 1,102 comments

The pitch: sticky government customers and a cheap multiple relative to the one name everyone benchmarks against. The comparison does a lot of work.

Bearish

quant_but_unemployed

@quantnojob

Share count up 60% in 18 months. Gross margin under 30%. The "contract" is an option period they already had. $BBAI moves 9% on a press release Palantir would put in the footnotes.

2:41 PM · 1,540 likes · 233 reposts

The pitch: this is a services business with a software multiple, and the share count is the only chart that has gone up and to the right.

Cult leader

u/PLTR_but_poor · 19 BBAI posts on WSB this year, two of them removed by mods

The bears are right about the share count and I don't care. Small defense contractors don't get valued on margins, they get valued on whether a bigger defense contractor wants them, and BBAI has the clearances and the contract vehicles the acquirers want. Every extension is one more reason the buyout math works.

Is it a good company? No. Is it a good ticker? Look at the volume. Position: 2,500 shares and the calls above. If it goes to $4 I'll write next week's bear take myself.