REI short squeeze potential
Ok boys I’ll keep it short and sweet as I have only recently found this company and trying to find and holes in my research. Ticker is REI for ring energy and it is showing around 50% shorted float. This is a highly profitable company that has lots of FCF, but they are a super small market cap which has risk. Apparently they used to be more leveraged with debt and people were betting against them, but recently have paid off a ton of the debt and seem to me like they will easily survive. Debt to equity is around 0.86 which feels reasonable. Down from around 1.2 a couple years ago. Their break even for oil production is around $50 per barrel which seems like a safe amount of breathing room to not go unprofitable and drown in debt.
Anyways, I’m licking my chops at the moment reading through all these high level numbers. I want to drop some big cash on this but want to see if anybody can spot any major holes in the play here. Good luck and happy hunting apes, this is not financial advice and merely a gamble I’m looking at.
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