THE CHEF FLIPS SHORTS | STRANGE STUFF GOING ON I NEED TO SHOW YOU

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Well honey there folks and welcome into today’s video hope you guys are doing great out there as always i’m gonna go in and show you guys some crazy stuff that’s going on with tattooed chef some very strange stuff and i want to explain all this and i think this will be um good information whether you’re somebody that’s a shareholder tattoo chef stock or whether

You just hold future stocks and you’re going to see certain things we’re going to talk about here today in relation to the stock price and what’s going on here so yeah i hope you guys enjoy this is always all i ask in returns that you smash that like button that’s literally it guys appreciate you being here as always for the chef if you haven’t got a chance to

Check out the hungry bowl yet definitely check it out this is dark mode oh i’m so excited for dark mode anyways that is a way to track the market see what’s going on the markets read our daily newsletter keep track of stocks cryptos everything like that and uh even listen to earnings calls right inside the app so if you haven’t got to check out that we’re on ios

Now and we’re on the android app store as well so i hope you guys enjoy that absolutely free to use that and download that okay alrighty guys so if you haven’t seen the chefs having another good day today this is the main shares i have in the main private account and uh up 35 000 today just on those shares there and yeah another very very good day for the the the

Chef okay and it’s by the way very very good day for a very very good food company too so shout out to a very good food company uh look at that i mean almost hidden twenty dollars i mean you know i don’t think the bears could have ever anticipated this stock would be at almost twenty dollars here a day and who knows there’s still time left in the trading day maybe

It goes over 20. we’ll see uh but i think most bears in the stock they thought this baby was going to be down for the count you know i saw them they were predicting it was going down to 12 to 10. um and for this to already be back at almost 20 there’s definitely some things going on underlying here that i kind of want to explain okay now you’re seeing things like

This tattoo chef call volume above normal indirectionally bullish this was posted two days ago bullish option flow detecting tattooed chef with 10 471 calls trading for x expected in implied volatility increasing over one point september 2021 20 calls in september 21 22 250 puts are the most active options with total volume of those strikes at about contracts the

Put to call ratio is 0.38 so you’re seeing that but then all of a sudden you’re seeing this okay tattooed chef put volume heavy and directionally bearish this was yesterday so you’re getting all this conflicting data around okay are these bets uh bearish bets are they the positive bets are that you know they believe the stock price is going to go up and you’re

Just seeing you know just kind of this very very confusing situation but it definitely seems like folks are playing the puts and the calls in a pretty big manner okay then you see this this is on fidelity here today this came out largest borrow rate increases among liquid names from the fly and guess what one of those stocks is tattooed chef right there tattooed

Chef largest borrow rate increases now what does this mean exactly well this this gentleman breaks it down very very good okay he see he says it means there’s vigorous short sale activity in a stock and the long side is fighting back by not providing shares to the stock borrower market this suggests volatility as longs and shorts collide with the winner yet to be

Determined traditionally long only buy and hold investors buy shares from a company in an ipo from the company in a secondary offering or from long only shareholders who are liquidating shares for some reason investors who have margin accounts hedge funds other sophisticated investors or unsophisticated investors who are being preyed upon by their broker explicitly

Allow their shares to be lent out to a borrower of shares why would someone borrow shares of a company that someone else owns primarily to sell them on a stock exchange to a new buyer this creates an effect two owners of the same share one being the short seller okay the short seller profits if shares subsequently go down in price as we know right more specifically

When he’s ready to close out his short he has to go into the market and buy the borrowed shares back if market price has gone down he can do so at a lower price as we all know than he previously sold them leaving him with a profit when you see a stock with a large borrow rate increase or special rate you know the demand for borrow went up or supply went down more

Than likely its borrow went up okay either way it means there is a vigorous short sale activity in the stock and the long side is fighting back by not providing shares to the stock borrow market at normal borrow rates which means they have to pay increased rates there this suggests upcoming volatility as longs and shorts collide with the winner of this battle yet

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Be to be determined and when it comes to the tattoo chef we know this is a battle ground stock right we know we’ve seen tattooed chef go down to 15 we’ve seen it go up to 25 and it seems like man this stock can be volatile i mean we saw after the earnings even though they reported 62 branded revenue growth we watched that stock drop what was it 16 the next day

Or something like that and then another drop the following day and then also now we’ve seen the stock rise from 16 from the ashes to you know today it’s flirting with 20 a share and that’s in a snap of a fingers right okay is another kind of you know simple breakdown here an increase in the borrow rate would mean that more people than average are borrowing it or

A few people that are borrowing large amounts either way it reflects a changed expectation in what the stock will do if i borrowed a large amount of a particular stock the purpose most likely would be to short it or to cover an existing short or options play you will often see large increases in borrowed numbers preceding a short squeeze as people rush to cover

Their short positions and leave others holding uh you know the bag in that situation right and obviously if you’re talking about what’s going on with the tattoo chef i mean this has been a very very strange such a fast bounce back in the stock like how rapidly this stock has just gone up 10 20 plus so quickly i would describe that as a pretty strange thing out

There that is going on but it starts to make sense when you see that borrow rate go up and when you see you know potentially a lot of shorts covering cover and covering that might not be all we have something else here that i want to explain in just a minute okay now tattoo chef short interest this is the latest numbers we have we don’t have the up to date what

The short interest is today but we have on on august 13th this stock had a short interest of 11 million 602 424 shares short interest average daily share volume 2 million so that means 5.7 days to cover on this stock right to cover off that short possession so we know definitely going into august there were a lot of folks that were short the stock not as many

As back in may back in may look at this the peak over 14 million shares short and what’s crazy is tattooed chef stock bottomed on april 20th it was around 15 dollars a share and then it went on a crazy run for you know quite a while there meanwhile there was all these chairs short there was more shorts having to cover they were kind of getting destroyed in this

Situation and it led into a really really ugly situation obviously for the shorts then also we had earnings also led into an ugly situation for the longs because the next thing you know the stock went from like 21 to like 16 a matter of snap of fingers okay and um you know here’s something we have going on this is this gets a little strange right so if you’re

Thinking this is retail money that has pushed up this stock over the past few trading days i can tell you no i would argue against that all day this has definitely not been retail trader money that has pushed up the stock the retail folks like myself and probably a lot of folks watching this video that are interesting tattoo chef stock and are investors of the stock

A lot of those folks were buying as a stock plummeted to the ground right and so a lot of us we were buying here at 17 16 15 16 16 1625 1675 and once the stock started moving up huge a lot of us already had our positions built out we already bought what we wanted to buy in the stock it had already done what we needed to do it went down a ton we got to add a bunch

Of shares aggressively and then basically just now kind of hold right but meanwhile you have this massive move upward here and i’m not convinced at all that this is uh you know retail folks buying this stock now the folks that are buying this stock now okay it’s it’s two groups in my opinion one is the one we just spoke about the short sellers that are having to

Cover and this stock has gone up way faster and a lot of them expect it remember short sellers they were convinced the stock was going down to 12 into 10. all of a sudden it went from oh wait the stock’s going down to 12 or 10 to today it’s flirting with 20 a share and that’s a mindset shift that happens in a course of a week you know this is why short selling is

So dangerous from the long side if tattoo chef goes down to 16 or 15 tomorrow which would be a massive drop like what 20 25 percent okay i’m gonna buy more shares to me as a long it doesn’t mean a dang thing but to a short seller a 20 25 move also on the upside is everything okay and uh when you’re short selling there’s unlimited loss i’m i can hold i’m willing

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To hold tattoo chef for years to go in the future i don’t need this stock to move you know in a massive way today doesn’t mean a dang thing to me if it goes up to 20 if it goes down to 18 if it goes to 22 i’m holding no matter what if the stock goes down a ton i’m buying so you know that that’s the difference between you know somebody that’s a long like myself and

A short in which you have the situation where also in the stock you were expecting to go to 12 now it’s going to 20 and your stop losses are getting hit and you’re covering cover and next thing you know more and more shorts have to cover that’s a first group okay now i do wonder if there’s a second group so i’ve gone on record and i told you guys that i think wall

Street money can start flooding in the stock in 2022 i think tattoo chefs revenues as they ramp up as they get closer and closer to profitability in this brand and this company is just more and more well known out there i think it is we’re just like a ticking time bomb on wall street money coming into the stock actively traded money hedge fund money coming in the

Stock in a real real way this is a perfect wall street story super high growth building out a very successful brand into a market that is massively growing and not getting smaller anytime soon which is the the whole vegan movement right so you have those three playing out those are three things that hedge funds and actively trade traded funds love they love high

Growth they love a company that’s growing into a massive growing market that’s not stopping anytime soon and they love a strong brand that is growing and getting bigger and bigger and bigger because when the actively traded funds see this the hedge fund see this they say okay you know now they’re in this retailer this retailer is just a matter of time before they get

Into this retailer it’s just a matter of time before they get 30 different skus like that company has over there 40 or 45 different skews remember tattoo chef’s getting in these stores with wha what he’s talking maybe three skus five skus seven skus at a time most big frozen food brands those companies have 30 40 skus you know in a store that are all moving volume

Like this is where tattoo chef’s going over time and so you you that’s all stuff that’s going to attract the hedge funds and those folks and those actively traded funds in my opinion in 2022 and then 2023 we start to talk about s p 500 potential inclusion and uh getting into some of the other indexes and some of these you know different things that folks have to buy

Don’t matter what right but what i think could be taking place here is i think there’s actually a decent probability because of how fast this ramp up in the stock is i think there’s a decent probability that there could actually be a fund with a decent size potentially buying up shares of this stock as we speak right now and it you know in the the move has been

So vicious so fast from 16 to 20 that it does make me feel like maybe there’s already a fund or two that is already saying hey you know what we’re buying in the stock we’re going to get in before the big other wall street funds get it because like i said i felt like 2022 is that year where a lot of these actively traded funds these hedge funds start getting into

This stock and i think there could be potentially a fund or two out there that’s like hmm i think we’re going to get in before the other big guys get in start next year okay and so when i look at their stock it is extremely interesting we’re not even talking about the fundamentals of the company just the stock price as far as a stock to watch just because this is

A battleground stock between the shorts and the longs and it doesn’t seem like this war between the shorts and lungs is going to end anytime soon at the end of the day the shorts are going to try to categorize this company as just a frozen food company right and that they can’t grow and remember this company’s going to be a lot bigger than just a frozen food company

Over time right they’re going to try to categorize this company as a money losing company because they’re expected to take a loss this year right meanwhile the longs like myself are going to obviously talk about the revenue growth the huge tam opportunity for this company the sku expansion the store expansion the international expansion which isn’t even like you know

Isn’t even on the radar yet but that will be a huge thing over the years in the coming years and so you’re going to have the shorts and longs continue to go at it and you’re going to have the long saying hey you know this valuation is at one something billion we believe this is going to be a 10 billion plus dollar company over the next five 10 years you have the long

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Say this is a 1 billion something dollar company that should be valued at 500 million or whatever so you’re going to constantly have the shorts and longs continue to collide in the stock i don’t think that’s ending anytime soon but where things get interesting is if we also start seeing inflows from the hedge funds and actively traded funds into this stock all of a

Sudden you know i i don’t know you know you got to understand when you’re talking about a 1 billion something dollar market cap when a if a big fund also is buying 50 million 100 million 150 million dollars of a stock that changes that stocks trajectory especially if that fund is planning on holding for the long term and they’re not planning on taking a short term

Profit in it because then you just took a ton more shares off the market and now there’s a a good example is tesla nasa right one of the reasons i mean there’s a lot of reasons why tesla went up so dang much okay one of the reasons obviously is a huge growth beyond the company two is they’re going after a massively growing market the tm there for electric vehicles

And autonomous driving is massive right the third is the investor base behind tesla is one that is buy on hold for the most part right folks at buying a tesla they are not selling those shares no matter what man they would sell every stock that they could possibly sell you know before they would sell tesla and what we see emerging in tattoos chef is definitely an

Investor based like myself that is looking at this talking like i’m not selling this stock i don’t care if it’s at 18 20 22 24 26 16 i’m not selling this dang stock i’m holding it so we’re taking shares off the market then if you have some big funds doing the same exact thing and they take shares off the market there’s less shares to be traded out there and then if

There’s less shares to be traded out there on the market the buying pressure that’s coming in there’s always going to be buying pressure that folks at new folks that want to buy the stock or folks that are already investing in stock that want to buy more shares and so you get into the situation where the stock price almost has nowhere to go but up and then lastly

If you compound that with short sellers that are relentless and they’re convinced like the stock is finally gonna go down and then maybe it takes a quick dip and then it heads right back up and so they get destroyed even more it sends the stock up even more than ever right and so you get into the kind of this situation where just gets worse and worse and worse and

Worse for the folks that are trying to bet against the stock and for the longs it turns into a better and better benefit and uh companies companies that are great growth companies will always trade at a huge premium versus other companies in the market and companies that have a great story behind them as far as 5 10 year out 15 year out growth those companies are

Always going to trade a huge premium to the market those short sellers don’t like that they hate that they don’t want these companies to trade a premium but the fact is people will pay up for growth i am willing to pay up for growth you know obviously there’s limits to it but at the end of the day if the if a stock has a phenomenal opportunity you’ll be willing to

Pay that you know tesla when i looked at that company was a 30 or 40 billion dollar mark cap nowadays it’s like 600 or you know 700 billion it’s not nearly as intriguing nowadays as it was back then right tattoo chef at a 1 billion something dollar mark cap based upon the growth i think this company’s gonna have over the next five ten years is extremely enticing

To me right if tattooed chef ever is trading at 10 or 15 billion the stock’s not nearly as interesting to me right because a lot of that growth has already happened a lot of that valuation pricing has already happened by that time these are some things to kind of think about guys so anyways this is a you know a crazy situation i’d love to hear your guys opinion

In that comment section as always if you’d like to be coached by one of our stock market millionaire coaches you can apply to join down there that’ll be the pinned comment those spots are extremely limited so do keep that in mind don’t forget to download the hungry bowl enjoy that guys it’s on ios and android much love as always and have a great day

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THE CHEF FLIPS SHORTS | STRANGE STUFF GOING ON I NEED TO SHOW YOU By Financial Education

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