[Music] now your in second pick for a stock that
could be a good short squeeze candidate is not in the AI realm but it's a brand many people are
familiar with right it's RH now the company the the stock ticker is Rh and the name of the
company is Rh but many investors may know it better as Restoration Hardware it's a um premium
supplier and manufacturer of Home Furnishings so obviously as you would expect uh in 2020 and
2021 the company was doing very well the stock was doing very well as people were buying houses they
were relocating they were renovating the houses they did have in fact at one point RH stock went
up over $700 a share well yeah it's at 241 right now so it's gone down significantly since then
and you would expect that for all of the reasons that we talked about now the housing market
is is tighter people who have looked to do Renovations on their home have already done
it others that might be looking to do larger Renovations might be holding off waiting for
more favorable interest rates waiting for inflation pressures to come down that's where the
opportunity May lie we have a we have a Federal Reserve that is likely to cut interest rates
when they meet next week that may not trickle down to Consumers right away but it is expected
that if that happens you might start seeing some loosening up in the housing markets in any
event the stocks tend to precede the overall Market by six to n months so now might be an
interesting time to get in on RH and if that stock does if the company does happen to improve
their earnings Outlook because right now revenue is about it 2019 levels so it's not too bad and
it's about where investors might expect to see it the problem is that right now the company their
earnings have been negative because the as a company they're facing the pricing pressures that
are coming from Supply chains and inflation and all that if that turns around you could see the
stock start moving up higher and again it might be an interesting short squeeze candidate now
does every short squeeze have to happen with that fan following like we saw in gain stop or
can it happen by the kind of economic factors you just talked about yeah I think it can
be it can be either one in fact I think what made GameStop so unique was the fact that the
short squeeze happened in absence of any real fundamental reason for it happening it was sort
of a Mania and again that's that's not to judge it one way or the other it's just to say it did
happen without any fundamentals many short squeez happened because of some fundamental Catalyst
and it's also important to note that many short squeezes never get to the level where GameStop
as which is again what made GameStop so unique [Music]