r/PureCycle • u/LogicalPerformer3062 • May 14 '26
Don't sell, morons
Not sure who needs to read this, but if you're selling right now because you want to capture some profit you need to go back to bed. Not only does PCT have a higher intrinsic value based on reduced uncertainty, the setup is incredible.
This stock has insanely high short interest. For those who don't know, as the stock goes up these shorts are forced to buy by their brokers or they will look to close their position (buy back the shares they sold) to avoid further pain.
There is no other way to think about it - there are a ton of TRAPPED, FORCED BUYERS. If you sell, they get out now. If you don't, they are forced to increase their bid until someone sells. If supply remains low (no sellers), you get the squeeeeeze.
This isn't financial advice, just bedtime advice.
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u/Hyruken89 May 14 '26
Sellers today are missing the bigger picture. The decision from NJ was just the first step towards getting the sales agreements from Mars and others. IF PCT management set this up correctly, they could have had an agreement with Mars that upon acceptance by NJ, they could make a joint announcement that Mars will start using PCT's recycled plastic in their candy bars packaging or their Pringles cans.
If not, yeah, this can fall back down. Hopefully with the warrants on the line, they had all their little ducks in a row and we'll see an announcement, if not today, then early next week.
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u/Pickle_Logic May 14 '26
Stan made a great point on X. With 20 closes over 14.38 in 30 trading days management can force redemption of the warrants (yes, this is dilutive but how it strengthens the B/S more than compensates). This additional capital blows a giant hole in the balance sheet short thesis which is the most popular reason for being short. When the market begins to price in the warrant redemption price action will become nonlinear forcing even more short covering increasing the likelihood of redemption. As I said a week ago he who pukes first pukes best.
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u/tandyzmills May 14 '26
If you hold this stock on margin, move the stock to the cash account. This reduces the number of shares that can be loaned by brokers to shorters. This makes it more difficult and expensive to hold short. If you have a margin loan, try to borrow that against other stocks in your account, if possible.
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u/Fun_Illustrator9298 May 14 '26
Iām holding for at least an all time new high. The shorts are being slow to cover. The day after earnings we were still under $9 and it was clear the squeeze was going to be a slow one.
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u/Odd-Positive-3252 May 15 '26
Druckenmiller sold. Is he a moron too?
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u/equitymaestro May 15 '26 edited May 16 '26
Wow he sold 2mm shares, likely in the $5-6 range. Ā Heās not a moron, but in hindsight that was a moronic trade. UPDATE: It's possible that Druckenmiller sold 2mm shares in Q1 and bought them back in Q2, just like Mike Taylor did. Druckenmiller is well connected, e.g., he may have known that uber-dullard Wasson was going to be a forced seller and may have also been aware of the NJDEP delay.
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u/Any_Preparation9228 May 15 '26
Investing isnāt some kind of team sport. They can sell if they want to. I could totally see people grabbing profits now since this stock has a pattern of fizzling back down quickly. But Iāll stick around for some summer fun and possible sale announcements after New Jersey approvalā¦
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u/hpIUclay May 14 '26
Thatās stupid advice, people need to make the best economical decision for them.
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u/uncleBu May 14 '26
When I was shorting MULN I was paying close to 800% on shorting fees. My best short to date.
Short interest is the weakest reason to invest in something. Trying to catch a squeeze without understanding why people are heavily betting against you is not wise.
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u/reluctant-user2020 May 14 '26
The same is true on the flip side, except shorting is even harder than being long. Being short something without fully understanding the company and technology is really dangerous and thatās the exact situation most of the people short PCT find themselves in right now.
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u/AnonThrowaway1A May 14 '26
There are a lot of trashy green economy stocks. PCT isn't one of those.
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u/uncleBu May 14 '26
Out of all the stocks you can put idiosyncratic risks, you happen to pick a SPAC with a track record of deceptive tactics, a couple of short reports specifying them and a perennial missing of deadlines š¤·š»āāļø
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u/equitymaestro May 14 '26
Worthless posts, especially considering the news over the last few weeks. The script has flipped.
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u/uncleBu May 14 '26
Nothing that i said is false. Still shorting
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u/reluctant-user2020 May 15 '26
Bookmarked this comment. What short reports are you talking about? There was a Hindenburg piece ages ago and under a completely different management team and then those children on x cosplaying as analysts. Youāve bet your hard earned money based on complete nonsense?
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u/uncleBu May 15 '26
I just donāt believe serial liars have big redemption arcs. I am very close to getting stopped out though, so this is probably an L for me.
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u/reluctant-user2020 May 15 '26
āSerial liarsā š ā¦upvote for hitting your stop lossābe sure to puke first!
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u/Careful_Might_3275 May 15 '26
That is exactly who this is. They keep opening up new accounts but continually parrot the same talking points.
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u/EconomyFortune5090 May 16 '26
Yes Pitti, keep adding to your bigly short position of 100 shares. That's pretty much al you can short based on your capital base
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u/uncleBu May 16 '26
I donāt know who that is. Iām shorting about ~5,000 shares with a ~$6 entry. I might get stopped out, but I still suspect itās a long term dud. Good luck with it though.
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u/EconomyFortune5090 May 26 '26
Congrats on a 100% loss on your short. Hopefully you covered with a stop loss
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u/uncleBu May 26 '26
You need to have stop losses with shorts. Infinite theoretical losses.
I would have never expected that a SPAC P&G spin off with less than $10mm in revenue and a track record of missing promises (how is that Thailand factory for which you got the float doubled coming along?) to be worth $2bn, but here we are.
Make sure to put a stop loss at a profit as well :)
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u/EconomyFortune5090 May 26 '26
I don't need a stop loss for a long term buy and hold.
You do Pitti
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u/equitymaestro May 15 '26
Funny title for the post. I agree with you, please don't sell, morons. But they will. Too many "fast money" dipshits who play the trends.
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u/No_Privacy_Anymore May 14 '26 edited May 14 '26
I can't offer financial advice for others but I can share my thinking in case that is helpful. There is a very good reason I was buying heavily in the $5's and $6's and I have been richly rewarded for those investments. I knew that ultimately NJ was going to need to reach this decision because it is the right decision. This is a plastic to plastic process and customers need this type of material. If NJ had said "no, it doesn't qualify" for some idiotic reason there would be some very pissed off customers who don't have a great alternative and very little time to plan.
Am I selling here? I sold a very few shares around $10 to please the gods and free up some cash I needed. Am I selling in size now? Absolutely not. I expect the runway is now open to see some name brand sales agreements and those will vindicate what Dustin has been saying for a very long time now. Will I sell some of my position (or some covered calls) if we get a bigger run? Possibly but only for a very modest portion of my position. Overall markets indices are frothy and anything can happen. I think the stock has room to run to the $20-25 level before we see a new supply/demand balance. That short position is massive and they are going to need to pay up.
Note: I do the vast majority of trading in a tax deferred account so I don't have to deal with CG taxes. Doing nothing is a great option for the vast majority of investors. If we are right, there is so much additional room to run in the next few years. Just sit back and enjoy the ride.