- There are nearly 3.4M shares of SZMK short as of 1/30/2015, representing over 15% of the float.
- Heavy recent hedge fund accumulation and share buybacks are likely to drive a short squeeze.
- Q4 results and 2015 guidance well exceeded expectations and confirm market pricing disconnect.
I’ve written about Sizmek (NASDAQ:SZMK) a couple times, with my firstarticle being published only a day before the company guided Q3 revenues down due to unforeseen weakness in the legacy-rich media business. My follow-up article was written right after the release of this Q3 report, where I reiterated my buy thesis at a deeply discounted price to where I initiated my coverage. The Q3 report was not as bad as expected, and the stock drifted up during the quarter to close at $6.80 in front of the Q4 release. With the Q4 report greatly exceeding expectations, this is likely to leave the shorts in panic mode, as their thesis is dead in the water.
Read my full report HERE only at Seeking Alpha.