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After Last Month’s Breakout, ISIG Stock Is More Than a Short-Squeeze

After Last Month's Breakout, ISIG Stock Is More Than a Short-Squeeze
Written by publishing team

before december, Insignia Systems (NASDAQ:Itself) most likely wasn’t on most investors’ radar. A small cap name in the field of marketing, ISIG Stock has for many years been desperately kept in obscurity. But a little over a month ago, it started experiencing a huge price boom.

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It all started on December 6, when Insignia announced that it was exploring a potential sale of the company. This news resulted in a gain of over 200% on this trading day. However, while it tumbled about 31% the next day, that wasn’t the end of an epic price rally.

Since making that initial jump on Dec. 6, from about $5 to about $15 a share, it’s since been enlarged to about $23 a share. Now, it wasn’t exactly a direct launch of the current price levels. Over the past month, it has continued to move like crazy, dropping to around $12 a share before returning to as high as $20 a share.

Much of the focus was with this once-under-the-radar stock with its perceived short-pressure potential. However, it is important to note that there are many catalysts that have more to do with the fundamentals of the company. This may be the key to its future performance. Besides the potential sale mentioned above, what are these triggers? Let’s dive in and find out.

ISIG STOCK AT A GLANCE

Headquartered in Minneapolis, Minnesota, Insignia Systems’ legacy business provides in-store advertising and display solutions to consumer product companies. In other words, it’s one of the many companies running those ads you see in supermarket aisles. Knowing full well that there is limited opportunity in this “old school” industry, Insignia has wisely worked on becoming more like a digital marketing company in recent years.

It was the news of the search for a buyer that drove the surge in ISIG’s share price that began last month. But more recently, it has been maintained by its appeal as a short play. as Investor Chris McDonald reported on January 10, that the stock’s short interest is currently around 47%.

With such a short run, it might catch the interest of the Reddit trading community, although that’s not a certainty. Having said all of this, I wouldn’t buy it just from the short squeeze angle alone. I would buy this for more fundamental reasons, not a bet on investor psychology.

Fortunately, there are other potential catalysts on the table that could give Insignia stocks an extra boost. While it’s not guaranteed that any or all of them will expire, it does make it more interesting than many other similar short squeeze stocks.

Many possible paths for further ascent

With it moving 5x in just over a month, you might think ISIG is running out of stock. However, even after its amazing run recently, there are many other factors that can help it rise to higher prices. Not just the possibility that his stress will last longer than expected.

First, one we’ve already discussed, its potential as an acquisition target. It’s currently in the red, and you might not think that’s the type of company a strategic acquirer or private equity firm might want to buy. However, there may be some interest in it as a proven acquisition. The buyer can achieve significant cost savings, by incorporating it into a larger operation.

Second, improvements in its operating results are likely to help propel it to a higher level. There is a potential for this to happen in the future, as it is rebranding itself as a digital advertising company. Third, a positive judgment in an antitrust lawsuit against a much larger competitor can move the matter upside down.

Simply put, it is short-sighted to write it off as just a “short squeeze” play. As with many small company names, changes in expectations can lead to huge moves for their stock.

Judging ISIG shares

Get a “B” rating in my country Workbook portfolioI will say that risk-averse investors may want to skip that. Most likely, this stock will continue to make wild moves.

Dealers who bought it on a whim may get impatient while playing it. Before going even higher in any of the unstressed factors I mentioned above, Insignia stocks can take a trip to anywhere from $10 to $15 per share. Also, while there are many potential paths to price hikes, the key word here is possible.

It is not guaranteed that the company will find a buyer. It’s also far from being locked in that it manages to manage its operations. Or she prevails in her legal battle with a larger opponent.

However, if you are active in more risky plays and are looking for a game with a bit of optional, ISIG stock could be a worthwhile opportunity.

At the date of publication, neither Louis Navilier nor the InvestorPlace Research Officer primarily responsible for this article (directly or indirectly) have held any positions in the securities mentioned in this article.

Louis Navilier, who has been called “one of the most important money managers of our time”, broke the silence in This shocking ‘tell everyone’ video… expose one of the most shocking events in the history of our country… and the one Transfer Every American needs to make it today.

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