Hi! I've been getting into a bit of higher risk/reward investing, and would love some thoughts on some very basic DD I did on $EDBL – Edible Garden. Please let me know your thoughts, thanks so much!
Seems like this stock could really run for a few reasons. First off, it is the most shorted stock per the new data released today at 72.82% float shorted. While that is in no way an incredible indicator of a short squeeze, I think it does bring attention to the stock. It is currently one of the most mentioned stocks on r/wallstreetbets, r/Shortsqueeze, and r/SqueezePlays.
Edible Garden specializes in sustainable farming, producing/selling “cilantro, rosemary, mint, thyme, oregano, bay leaves, chives, poultry mix, sage, dill, buttercrunch living lettuce, basil, living butterhead lettuce, basil, parsley, arugula spring mix, baby arugula blend, baby romaine, and crisp ranch and Caesar salad kits”. This seems very on trend, with a growing population vegetarians and vegans, and efforts to support local farming. Also, it seems hard to see people letting the shorts take down a farming leader.
The stock is way down this year, but they just closed their public offering, meaning no further dilution.
Additionally, Edible Gardens announced a partnership today with the EPA/USDA/NJ Institute of Technology, which to me signals future growth. I don't see these organizations partnering with a company that is at any risk of going under.
Lastly, most stocks in this range are rated as strong sells by Wallstreet because of the usual risk. However, Wallstreet has it as a buy. On top of that, it has 50% ownership by company insiders, indicating that they believe in the success of the company.
Very basic DD, but overall, I could see support for a company in sustainable agriculture/farming (with a fun ticker name EDBL) getting a lot of support in the coming days. Curious to hear any thoughts?
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