- The company manufactures steel pipes and its profits have been negatively affected by high steel prices.
- However, Huadi’s market valuation has been soaring since early October and it seems the likely reason is retail investor optimism about a short squeeze.
- The short float is low, so a short squeeze seems highly unlikely and I’m bearish.
- Unfortunately, there are no put options and the short borrow fee rate is 88.72%. It could be prudent to wait for the latter to decrease before short-selling.
For further details see:
Huadi International Group Looks Overvalued Based On Fundamentals