Up a scarcely believable 973% on a year-to-date (YTD) basis, the short-squeeze party is alive and well for the Newegg (NEGG) stock, thanks to the surprise rally because of the second round of the meme-stock frenzy.
The short-squeeze is coming amid an expanded share sale program, with insiders continuing to dump the stock, profiting from this unlikely rally. Now, contentious former pharmaceutical executive Martin Shkreli has weighed in on the debate with a clear verdict, calling the stock “close to worthless.” Thus, he is short-selling the counter, citing the company's weak fundamentals, especially its low gross margins.
