News that celebrity shareholder and board member Oprah Winfrey has lost more than 40 pounds on the Weight Watchers International, Inc.WTW 8.75% plan has the stock soaring 15 percent Thursday. Winfrey promotes the plan in a brand new commercial for Weight Watchers in which she confirms her recent success on the program.
Unfortunately for Weight Watchers investors, the stock’s share price has also been on a diet in 2016. Even after Thursday morning’s move, Weight Watchers is down 48 percent this year.
The stock’s violent reaction to the Oprah news is likely in large part due to a short squeeze.
Although Weight Watchers short interest has declined 15.8 percent in the past six months, it remains extremely high. According to shortsqueeze.com, Weight Watchers currently has a huge short percent of float of 50.5 percent. The stock has more than 13.8 million shares held short with 23.8 days to cover.
Oprah’s new commercial is part of Weight Watchers new “Live Fully” campaign, which focuses on the importance of food, friends, experiences and energy in living a fulfilling life.
The timing of the new campaign is likely not a coincidence. A fresh wave of weight-related New Year’s resolutions are…
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!