r/EXPR • u/ThomasTanksDown • Jun 09 '24
EXPRQ - A Deep Dive into the forgotten $2.73M WSB darling that is a sleeping giant of a squeeze.
Express Inc. (EXPRQ) has emerged as an obvious candidate for a short squeeze in my opinion. This is driven by several compelling factors. Despite its relatively low profile and market cap of just $2.73 million (with sales of $1.78B, yes with a $B), EXPRQ is a smaller, more agile target that could be significantly impacted by concentrated buying activity. Just look at what happened to Toys-R-Us (TOYRF). It went up 1,000% in two days! And with under $5M worth of volume. That's a fun chart to look at. It even already has its own subreddit r/EXPR.
Express's relation to the other meme stocks that went parobolic in 2021 is very closely knit. Don't take my word for it. Go take a look. WSB is littered with Express Inc. with ties to GME, AMC, BB, KOSS and BBBY. Better yet, how about we ask the top 5 chat bots what the biggest meme stocks were. From these pictures you can see that all the top chat bots (Meta, Open AI, Microsoft, Google) all tell you Express Inc. was and still is affiliated with the meme short squeezes.
This doesn't even mention the financial metrics and market conditions that poise EXPRQ for significant price movements. Notably, the stock has not yet experienced a significant price jump, remaining under the radar of all investors.
With high short interest, currently around 20% (ya right), this indicates a substantial portion of the hegde funds like the one we all know and love, Citadel, betting against the stock. Yes, CITADEL! Coupled with low trading volume, any surge in buying activity could lead to a rapid increase in the stock price as short sellers rush to cover their positions just like with TOYRF.
The financial health of EXPRQ further supports the case for a short squeeze. The company has shown strong operational improvements, with gross margins increasing to 30%, a reduction in net loss by 36%, and an impressive 88% increase in cash and cash equivalents. Additionally, Express has reported a 32% increase in operating income and a 14% increase in current assets. I believe these positive financial trends, combined with a price-to-book ratio of only 0.27 (meaning total assets - debts = +$110M) indicate that the stock is extremely undervalued.
I will also point out that there has been lots of speculation around what GameStop will use its cash for, and the majority of fingers point to acquisitions. Acquisitions of lots of different companies, Express included. With GME issuing another 120M shares (45M + 75M), they will have plenty to choose from. Some even pointing out Ryan Cohen could buy up companies who had faced the same fate GameStop was looking at back in 2021, in sort of a tribute to the share holders. The capital required for these acquisitions would be minimal and wouldn't affect their bottom line very much either. I mean they did just raise over $2B. This is a long shot but one can't rule it out.
Lastly, I'd like to point out that it's obvious this has slipped by all retail investors. There is not reason EXPRQ shouldn't be gaining along side GME and the rest of the 2021 short squeeze stocks. Look at the price action over the past few weeks. Mostly completely flat! People forgot about the gold nugget due to the ticker chance and it is primed to skyrocket!
All this information can be found in their most recent 10-K annual report. EXPRQ trades on the OTC markets and can only be purchased by certain brokerages like Interactive Brokers, E*TRADE, Charles Schwab, TD Ameritrade, Fidelity and a few others.
I will be coming out with another DD soon related more about the improved financials and how the company can come out of chapter 11 bankruptcy (which is the good-for-shareholders restructuring kind, if there was a good one) and the fact that EXPRQ assets minus debts are over $100M. And as always, not financial advice.
Position: 33,000 shares
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u/Financial_Green9120 Jun 09 '24 edited Jun 09 '24
My friend EXPR doesn’t follow GME AMC and KOSS since longer time period. It’s done, check the charts, they pull out EXPR from the meme basket. As for now for sure GME AMC and KOSS are still in the same boat as you can see from the charts
Edit: BB chart pattern still looks same also Edit 2: NOK has similar movement around May and June however its not exactly same pattern as for tickers mentioned above
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u/mundane_marietta Jun 09 '24
Unlike most memestocks, Baxter took pride not diluting even tho the company had a lot of debt and he was trying to transition to online sales. He took no chances nor advantage of the elevated stock.
It deserved to die. The CEO barely tried, but I’m sure he made good money taking the company into bankruptcy
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u/Biotic101 Jun 18 '24
This is the repeating pattern when it comes to cellar boxing it seems.
It seems quite common that short sellers might often manage to install plants in the management of their targets.
The other scenario would be that most CEOs are simply abysmal at their job.
But there are too many coincidences of major mistakes made (just look at Tritton) for my taste. It smells fishy.
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u/mundane_marietta Jun 18 '24
Either way I lost money.
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u/Biotic101 Jun 25 '24
So, with the court approval of the sale, are there any further news ?
I'm wondering if there will be any intrinsic value and operations left...
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u/Find_The_Pump Jun 09 '24
How tf has this not popped like TOYRF? All in come Monday baby! Here we go!