Hopefully this covers the information you are looking for.
On Friday I said I felt Tootsie Toll was a good short squeeze candidate for this week because of how it has been trading for the last month and the percentage of short shares. Some of the information will contradict my previous post as this is much more thorough and I believe it still supports the opinion it will run this week and we all know how different sites always offer different information. I am hoping this will clarify as much as I can. A couple people asked for more DD on the subject so here is some more info I have been able to put together.
Tootsie Roll Industries, Inc., together with its subsidiaries, manufactures and sells confectionery products primarily in the United States, Canada, and Mexico. The company sells its products under the Tootsie Roll, Tootsie Pops, Child's Play, Caramel Apple Pops, Charms, Blow-Pop, Charms Mini Pops, Cella's, Dots, Junior Mints, Charleston Chew, Sugar Daddy, Sugar Babies, Andes, Fluffy Stuff, Dubble Bubble, Razzles, Cry Baby, Nik-L-Nip, and Tutsi Pop trademarks. It sells its products directly to wholesale distributors of candy and groceries, supermarkets, variety stores, dollar stores, chain grocers, drug chains, discount chains, cooperative grocery associations, mass merchandisers, warehouse and membership club stores, vending machine operators, the United States military, and fund-raising charitable organizations, as well as through candy and grocery brokers. The company was founded in 1896 and is based in Chicago, Illinois.
This company has a market cap of 2.4 billion, has an P/E ratio of 40.16 and had an operating revenue of 471.1 Million in 2020 even with Covid. Has positive cash flow of 1.53 a share and a book value of 11.66 a share. In the last 10 Years other than 2020 their revenue has never been below 500 Million. The company was established in 1896 and invented the Tootsie Roll for which they are named in 1931. It was listed on the NYSE in 1922 under the name Sweets Company of America. Lots of details here... https://www.referenceforbusiness.com/history2/85/Tootsie-Roll-Industries-Inc.html
So Why will this go up this week. The short information is the stock has been steadily increasing in price hitting as high as $36 in after-hours trading on Friday. This is a chart showing performance against the DOW and NADAQ over the last month. As you c
... keep reading on reddit ➡Tootsie Roll is a 130 year old company with fairly large 24% short position. 95% of the company is held by insiders that pay themselves a nice 3% dividend and since they do very well with that they tend to hold their shares so there isn't a lot of shares on the market that trade. Daily volume is fairly low and over the last few weeks it has been consistently below average volume. 52 Week price range is $28.15 - $57.26. Options are cheap and with a little volume this one will take another run like it did in January as there just isn't a lot of shares out there to buy and that means there isn't a lot of shares to cover that short interest.
Yes this has it's challenges but what it does not have is a lot of risk. It is trading at or below the year average and is not going away. Take a look at them. Do a little DD and see if this one works for you. I think it is going to run because eventually shorts have to cover and it is drifting up not down... IMO anyway.
Few other thoughts, This is a re-opening play as a large portion of their sales is to recreation type venues including amusement parks and theatres. Everyone knows their product and while some love it and some hate it you definitely all know it. As a long hold, and not for the possible squeeze that may or may not happen over the course of they year it will go up as it is generally strong though summer and of course Halloween. Regardless of how you want to look at it I think this is a buy with a few upsides.
I have 5000 shares and March 19 calls at 35.
Shared on twitter by the Najarian brothers it give me much more confidence that Tootsie Roll will short squeeze in the coming days. The stock has been steadily been gaining in price over the last month yet remains over 25% short. Insiders hold 95% of the tradable float so chances are the shorts are not going to be able to cover from the insiders leaving a 5 to one short to available shares if everyone else decided to sell. I have the March 19th calls as well as a stupid amount of shares because I think the hedge guys are trapped in this one. I would be interested to see if anyone thinks I am reading this wrong. Only challenge I see is low volume but really that should help if it gets some market buyers as well.
It did squeeze in January too which is why it caught my attention. At that time it got over $50. At that time hedgies were over 45% short. Otherwise not much has changed between then and now.
https://preview.redd.it/774ecxvf7mm61.png?width=807&format=png&auto=webp&s=a35a5f8f0780d9bc047d0414b883942df9c870f8
https://twitter.com/MarketRebels/status/1370200447995277313?s=20
https://preview.redd.it/z2s01jd58mm61.png?width=1245&format=png&auto=webp&s=daff5add2b65de4772adc6997c778889495cd3a8
Tootsie Roll is trading like it wants to break out again but needs to get some more volume to do it. Options are cheap and there is a significant short interest. Trading on a higher trajectory since February 17th when it was on at a multi-month low. Still showing a 24% short interest and 95% of the shares are with insiders. This is a short squeeze dream in my opinion if it gets any volume. Solid company, pays dividends at 3%. Look at it and see what you think.
