I’ve said it before, but I’ll preface this with the fact that the majority of my investing up to now has been what the kids today would call Boomer investing. Seeing the opportunities that this community has found has had me on the lookout for others, and I’d appreciate any opinions on this one. I think it’s a short term play for tomorrow or early next week, but would like to see whether there’s anything in it.
Background
LOCL is the ticker for Local Bounti, a disruptive AgTech firm that grows produce in a sustainable, controlled environment free from GMOs. It merged on Monday with LIII (Leo Holdings III) and traded flat on Monday, dipped Tuesday, and jumped yesterday.
The volume yesterday was 2m (> 1000% above 60 day avg) and it’s getting some traction on Reddit, with the DD there suggesting that there’s a tiny float (1.94m) and there was a 94% redemption rate on merger. Reddit - Dive into anything
Thoughts
- This isn’t a long term hold. The aim for me would be to confirm that it’s going to carry on attracting retail attention, and might jump a bit more tomorrow before a dump next week.
- My main bear point is that the action might already be over - it was halted up and down yesterday around halfway through the day, but it looks like volume picked back up toward the end of the day.
- I was planning to keep an eye on the sentiment on Reddit, and look at the volume at open tomorrow and see how it goes before opening a position.
- This is shares/warrants only, so there’s no gamma squeeze possible.
- Please don’t go in heavy on this, I’m adding this to a watchlist to see whether it rips again tomorrow, but it could just as easily go the other way.
- Avoid LOCL.TO on the TSX. It’s unrelated but did spike yesterday thanks to a combination of FOMO and financial illiteracy.